Great Power Reclamation

Chapter 1556 Big Plan 2
In order to maintain this value concept, in addition to strong support from religious, historical, and social backgrounds, legal regulations have also made useful guidance.

There is no specific and independent law on charity in the United States, and the regulations and clauses on charity are scattered in federal and state laws and regulations such as the Constitution, tax law, company law, and employment law.

Tax laws and corporate laws are crucial to the sound development of charities. The former involves external incentives and supervision of charities, while the latter concerns the internal governance of charities.

The United States is an early country that gives tax treatment to charity.As far back as 1913, U.S. tax laws have provided that donations to recognized charities are tax-deductible.

It was not until 1950 that the former Federal Republic of Germany introduced this clause in its income tax law, and it was earlier than other countries.

Donations to charitable organizations by individuals and companies can deduct a certain percentage of income tax, property tax and gift tax.Such an incentive mechanism also encourages people with a lot of wealth to actively carry out charitable activities, whether it is out of ideals or practical needs.

Of course, the supervision of charities is also essential.On the one hand, it is necessary to regulate trust behavior in charitable activities, and on the other hand, it is also necessary to strictly distinguish and control the boundaries between charitable organizations and commercial and government agencies.

The federal tax law not only establishes a "firewall" to restrict the commercial activities of charitable organizations and the commercial ownership of foundations, but also clearly stipulates that charitable organizations are not allowed to participate in legislation, election campaigns, and substantive lobbying activities.

It not only ensures that the financial power and influence of charitable organizations are not abused, but also provides a strong guarantee for the credibility of charitable organizations.

With these provisions at the bottom, eventually Jenny and Emily start to have a big plan.Of course, this plan is also because of the wealth of the fourth child.

The two women knew the fourth child's net worth very well, otherwise they wouldn't have made such an idea.

As soon as the fourth child came back, the two quickly revealed their plan, which was to ask the fourth child to contribute a sum of money to establish a charity fund.Regularly donate to some public welfare projects every year.

The fourth child is definitely not happy. Why donate the money earned by labor and management based on their ability?Besides, what good will it do me to donate?
After the two introduced the operation mode of the charity fund in detail, the fourth child was happy.Every time we talk about some philanthropic figures in the United States, everyone admires them. For example, Bill Gates promised to donate 95% of his property to the Gates Foundation after his death. A "Giving Pledge" (Giving Pledge) organization, many wealthy Americans have joined, promising to donate more than half of their wealth.

On the contrary, in terms of charity, it is rare for the rich in China to hear that someone wants to donate 90%, or even half of it, and donate a little money every year at most.
only talk about technology
2.2 million followers

Following
How do rich Americans avoid taxes by "doing charity" and "donating"?

only talk about technology
2021-05-21 12:52长沙春田禾盛信息科技有限公司官方帐号
Following


Every time we talk about some philanthropic figures in the United States, everyone admires them. For example, Bill Gates promised to donate 95% of his property to the Gates Foundation after his death. A "Giving Pledge" (Giving Pledge) organization, many wealthy Americans have joined, promising to donate more than half of their wealth.

On the contrary, in terms of charity, it is rare for the rich in China to hear that someone wants to donate 90%, or even half of it, and donate a little money every year at most.



So the question is, why do the rich in the United States donate so generously?In fact, in the final analysis, it is still for tax avoidance, just under the guise of doing charity.

Let’s talk about the inheritance tax in the United States first. It was levied in 1916, and it was as high as 40%. Later, in order to prevent the rich from taking advantage of the loopholes, they donated their property during their lifetime, so they introduced a gift tax. The highest level is as high as 50%.

In other words, if these rich people give away their property, half of it will be taken away by the state immediately. More importantly, this tax policy in the United States is a bit weird, that is, the money on the books.It cannot be used to pay taxes.

For example, if a rich man has an inheritance of 1000 billion US dollars to his children, the descendants must first raise 500 billion US dollars to pay taxes, and then get the 1000 billion US dollars instead of directly deducting 1000 billion from the 500 billion US dollars Dollars, $500 billion for you.

As a result, many people can't even afford to pay taxes. They borrow money everywhere, sell houses, assets, etc. to make up 500 billion U.S. dollars, and then they can get the 1000 billion U.S. dollars from their parents. If they can't make up 500 billion U.S. dollars, Sorry, you can't get the $1000 billion.

So the rich thought of a way, that is to set up a private charitable foundation, and transfer all their property into it, so that they don't have to pay taxes, and the charter of the private charitable foundation can be set by themselves, who It's up to you to be responsible.

Then let the children be in charge of the foundation, and then you can give the children high wages and high consumption. Anyway, you only need to use 5% of the foundation for charity-related things every year, so that the money is in the hands of the children again. Tax paid.

Of course, there are various operations, such as a foundation donating a building to a certain university, so that children can go to study, the United States encourages charity, and there are personal income tax benefits for donors, income tax deductions for charitable funds, etc.

In fact, the government also knows that everyone is doing this to avoid taxes, but it also ensures that these rich people keep their money in the United States, because the money eventually goes back to the construction of the United States, because these foundations are more or less It is still creditable to use money to develop medical care, poverty relief, etc.

If the government imposes an inheritance tax, it may be even worse for these rich people to immigrate to countries that do not charge taxes. Therefore, the government allows everyone to do this, which is a win-win situation.

In China, whether it is setting up a foundation or directly donating money, it is a real donation. It is a real donation, unlike foreign foundations, which are actually "fake donations", so few rich people in China do this. Everyone donates according to their ability.

The fourth child couldn't help feeling a sigh: "This evil emperor of the United States can even make donations so fresh and refined! Donated by labor and capital!"

So the fourth child moved the funds in his hand, pooled 100 billion US dollars, established his own foundation, and made a clear promise: "All these funds will be used for various assistance in the United States."

Jenny and Emily took the opportunity to fuel the flames and found the media to hype.For a time, people all over the United States knew about a person named Fourth master and his charitable foundation.

The main reason is that the fourth master is still a college student, and it is not new for a college student to start a business.But being able to make such a big business is something new!

Plus a charitable fund of tens of billions of dollars, this can be called a miracle for a student!
　Guys, do you still have the tickets?It has already been surpassed by others, and fell from the first place to the third place, which is so annoying.

　　
　
(End of this chapter)