Bill Gates pays less taxes as he donates to a charity
Bill Gates runs that charity
Bill Gates then gets to decide how that charity spends his donated money
This then means that he can use what should have been tax to:
Pay himself with the charities money, as he is an employee of the charity
Lobby politicians using the charity’s money
Otherwise direct the charity to work in his best interests
Which part are you disagreeing with? I guess he doesn’t “make money” in the strictest sense, but it sure seems like he’s exploiting the system to keep more of it
Issue is if he’s paying himself with the charity’s money he’d have to pay tax on that, and if he wrote that off with a donation and paid himself again then it’d reset the loop - there’s no loophole there, literally, as it’d be an endless closed loop of transferring money.
Given the best interests of the US government are destabilising other countries and supporting unfair healthcare companies, given what is known about Bill Gates’ charity spending I think a higher proportion actually goes to the betterment of society than would if it went to the US government
Otherwise direct the charity to work in his best interests
I guess you can argue that eliminating malaria is in his best interests, but it’s pretty reaching. I guess nobody should do anything good if it might indirectly benefit themselves.
Fair, in this example Bill Gates isn’t exactly the best one to pick. And the clarification on the lobbying rules is definitely a valuable bit of information, so thank you for adding that.
I was more trying to point out that the original comment wasn’t saying that the tax break “made money”. It’s all about shuffling it around to avoid taxes.
At the end of the day, it allows Bill Gates (or other billionaires) to spend otherwise taxable income on whatever they deem important. Whether or not you agree with how they’re spending their money is irrelevant
I’ve come to the same conclusion. Every time there’s a corporation or billionaire either scrapping something or giving something away, then it’s “for the tax breaks”.
I’m convinced no one on Lemmy or Reddit knows what a tax break actually is or that YOU DON’T MAKE MONEY FROM THEM!
The above post seemed to be saying that:
Bill Gates pays less taxes as he donates to a charity
Bill Gates runs that charity
Bill Gates then gets to decide how that charity spends his donated money
This then means that he can use what should have been tax to:
Pay himself with the charities money, as he is an employee of the charity
Lobby politicians using the charity’s money
Otherwise direct the charity to work in his best interests
Which part are you disagreeing with? I guess he doesn’t “make money” in the strictest sense, but it sure seems like he’s exploiting the system to keep more of it
Issue is if he’s paying himself with the charity’s money he’d have to pay tax on that, and if he wrote that off with a donation and paid himself again then it’d reset the loop - there’s no loophole there, literally, as it’d be an endless closed loop of transferring money.
Given the best interests of the US government are destabilising other countries and supporting unfair healthcare companies, given what is known about Bill Gates’ charity spending I think a higher proportion actually goes to the betterment of society than would if it went to the US government
Why does Bill Gates earn nothing through the Bill and Melinda Gates Foundation?
A 501©(3) organization is subject to heightened restrictions on lobbying activities, A 501©(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status. Lobbying may not constitute a “substantial part” of the activities of the 501©(3) organization. [1]
I guess you can argue that eliminating malaria is in his best interests, but it’s pretty reaching. I guess nobody should do anything good if it might indirectly benefit themselves.
source ↩︎
Fair, in this example Bill Gates isn’t exactly the best one to pick. And the clarification on the lobbying rules is definitely a valuable bit of information, so thank you for adding that.
I was more trying to point out that the original comment wasn’t saying that the tax break “made money”. It’s all about shuffling it around to avoid taxes.
At the end of the day, it allows Bill Gates (or other billionaires) to spend otherwise taxable income on whatever they deem important. Whether or not you agree with how they’re spending their money is irrelevant
I’ve come to the same conclusion. Every time there’s a corporation or billionaire either scrapping something or giving something away, then it’s “for the tax breaks”.