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In order to maintain this value concept, in addition to strong support from religious, historical, and social backgrounds, useful guidance has also been provided by legal regulations.

There is no special and independent law on charity in the United States. Charity-related provisions and clauses are scattered in the Constitution, tax law, corporate law, employment law and other federal and state laws and regulations.

Tax law and corporate law are crucial to the healthy development of charity. The former involves external incentives and supervision of charity, and the latter is related to the internal governance of charitable institutions.

The United States was the first country to give tax treatment to charities. As early as 1913, U.S. tax law stipulated that donations to recognized charitable organizations were tax-deductible.

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

Donations made by individuals and companies to charitable organizations are deductible against a certain percentage of income, property, and gift taxes. Such an incentive mechanism also encourages people with a lot of wealth to actively engage in charitable activities, whether out of ideals or practical needs.

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

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, campaigning, or substantive lobbying activities.

It not only ensures that the financial resources 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 end, Jenny and Emily finally begin to have a big plan. Of course, this plan was also because of Lao Si’s net worth.

The two women knew the fourth child's net worth very well, otherwise they would not have made this idea.

As soon as the fourth child came back, the two people quickly revealed their plan, which was to ask the fourth child to use a sum of money to create a charity fund. Make regular donations to some charity projects every year.

The fourth child will definitely not be happy. Why should the money earned by labor and management be donated? Besides, what good will it do to me if I donate it?

After the two people 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, and "Stock God" Warren Buffett even did so. A "Giving Pledge" organization, many wealthy Americans have joined and pledged to donate more than half of their wealth.

On the contrary, when it comes to charity among China's richest people, it is rare to hear that some people have to donate 90%, or even half, or at most a little money every year.

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How do wealthy Americans avoid taxes by "charity" and "donations"?

Just talk about technology

2021-05-21 12:52 Changsha Chuntian Hesheng Information Technology Co., Ltd. official account

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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, and "Stock God" Warren Buffett even did so. A "Giving Pledge" organization, many wealthy Americans have joined and pledged to donate more than half of their wealth.

On the contrary, when it comes to charity among China's richest people, it is rare to hear that some people have to donate 90%, or even half, or at most a little money every year.

So the question is, why do American billionaires donate so generously? In fact, in the final analysis, it is still to avoid taxes, just under the guise of charity.

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

In other words, if these rich people give away their property, half of it will be immediately taken away by the country. 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 leaves an inheritance of US$100 billion to his children, the descendants must first raise US$50 billion and pay taxes, and then receive the US$100 billion instead of directly deducting US$50 billion from the US$100 billion. U.S. dollars, give you $50 billion.

This has led to many people not even being able to raise the money to pay taxes. They have to borrow money from everywhere, sell their houses, assets, etc. to get the US$50 billion, and then they can get the US$100 billion from their parents. If they can't raise the US$50 billion, Sorry, you can't get this $100 billion.

So the wealthy people 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 decided by themselves. Who can It's up to you to take responsibility.

Then just let the children be in charge of the foundation, and then you can give them high salaries and high consumption. Anyway, you only need to use 5% of the foundation for charity-related matters every year. In this way, the money will be in the hands of the children again, no need Taxes paid.

Of course, there are also various operations, such as foundations donating a building to a university so that their children can study. The United States encourages charity, and there are also 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 this also ensures that these rich people keep their money in the United States, because the money eventually returns to the construction of the United States, because these foundations are more or less If you spend money to develop medical care, poverty relief, etc., you still have merit.

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

In China, whether you set up a foundation or make a direct donation, the donation is really made. It is a real donation, unlike foreign foundations, which are actually "fake donations." Therefore, very few rich people in China do this. Everyone donates according to their ability.

The fourth child couldn't help but sigh: "This evil American emperor can even make donations so refreshing and refined! Labor and management donated!"

So Lao Si pulled together the funds in his hand, collected US$10 billion, established his own foundation, and made a clear promise: "All of this money will be used for various assistance in the United States."

Jenny and Emily took the opportunity to add fuel to the flames and invited the media to publicize it. For a time, people all over the United States knew about a man named Fourth Master and his charitable foundation.

The main reason is that this fourth master is still a college student, and it is not new for a college student to start a business. But it’s refreshing to be able to make your business so big!

Coupled with a philanthropic fund of tens of billions of dollars, this can be called a miracle for a student!

Guys, do you still have the tickets? I have been surpassed by others and dropped from first place to third place. It is so annoying.