These foundations are billionaires ways of avoiding wealth transfer, with a halo. Usually in effect the billions are protected from confiscatory taxes and wealth transfer, and they are obliged to spend 5% a year, but these billionaires spend it on buying access to 10%-a-year investments, and they hire family members and congressmen's nieces (as part of what is "given away") so the power is in perpetuity. We taxpayers maintain the cost of protecting the billionaires' assets. But the newest member has created a foundation with a twist:
If they are not obliged to spend 5% as an LLC, how will they increase the value, tax-exempt, over time? It is something to contemplate what with deflation changing the nature of investments.
Tyler Durden takes his dishonesty apart from a different angle.
Feel free to forward this by email to three of your friends.
Zuckerberg added that he and his wife will receive no tax benefit from transferring their Facebook FB 1.72% shares (currently worth that whopping $45 billion) to their foundation. Rather, they will be on the hook for paying capital gains taxes when the LLC sells its shares. Had it been set up as a traditional foundation, they would have received a tax benefit.When it sells? It never will. But never mind, the more interesting thing is what happens in a deflationary era (the next forty plus years) when the asset value is falling faster than the preferential deals billionaires get can cover the deficit?
If they are not obliged to spend 5% as an LLC, how will they increase the value, tax-exempt, over time? It is something to contemplate what with deflation changing the nature of investments.
Tyler Durden takes his dishonesty apart from a different angle.
Feel free to forward this by email to three of your friends.
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