Reply to thread

Message: [QUOTE="Niastri, post: 5654913, member: 722"] The collectives aren't deductible. But if I were to have, say, a billion extra dollars, I could donate that billion to the Niastri Foundation. I would get a billion dollar deduction to my taxes. Considering the tax benefits such rich people already get, that probably reduces me to zero taxes paid in any given year. Legally, if you are still in control of such a foundation, the funds have to be distributed to genuine charitable organizations or charitable works at the rate of 5%. That $1 billion is going to earn you $50 to $80 to $100 million annually depending on how it's invested in the foundations accounts. Because you've donated $1 billion you're obligated to use 50 million on charitable things, you can find charities you actually want to donate money to. But if you're getting a 7.5 % rate of return on the billion dollars, that still leaves you 25 million to spend on representatives of your charity, like athletes, that you want to support. Ie, your favorite college sports team. (You also can use the charitable foundation to give no show jobs to your mistresses and cronies and pay them to hang around.) Even better, you can pay yourself a salary to run the thing, as long as it's in line with other leaders of similar organizations. Ever wonder why CEO and board of Directors salaries have increased so much, it's because people like to hire themselves for many millions of dollars a year to run the organization that manages their own money. Now, you're still in control of your initial billion dollars you've got a huge billion dollar tax deduction, you actually might do some good with the 50 million you donate various charities or charitable works you find directly, and you were able to funnel money to your favorite basketball or football programs. I'm not a tax lawyer or an accountant. My expertise lies on the investment side... but I'm pretty sure that works under current law. As for comment about the IRS, There is no incentive whatsoever to go after the wealthy class no matter what they're doing illegally regarding their taxes. And with the recent defunding of the IRS, there's no way they can actually make anything stick. What it comes down to is a billionaire can steal $1 billion in taxes and then IRS comes after him, he pays a $20 million fine. That is a very nice rate of return for the tax evader. Until we put the super Rich in jail for tax evasion, there's no incentive to pay taxes. Fines are just the cost of doing business. additionally, Billionaires have lawyers that are way better than the guys trying to enforce the laws. So the IRS gets a $20 million settlement on a $1 billion tax bill and chalks it up as a win. And the billionaire laughs all the way to the bank... But only after giving a press conference about how unfairly he's been treated. [/QUOTE]

Verification: What is a Syracuse fan's favorite color?