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submitted 10 months ago* (last edited 10 months ago) by jeena@jemmy.jeena.net to c/science_memes@mander.xyz
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[-] MystikIncarnate@lemmy.ca 127 points 10 months ago* (last edited 10 months ago)

I consider Gates to be "better" than most billionaires, but, I recognize that he's still a billionaire, and as such, his philanthropic endeavors are as much about him having wealth and maintaining his wealth as they are about him being a "good person".

Let me explain: it's a tax write off. Basically, billionaires often donate to charity, not because they're particularly giving, but because it reduces their taxes. They basically take the money they would otherwise pay in tax, and instead pay it to a charity that then does whatever they do with it.

By establishing a charity for himself, he can personally pay his charity the money that would otherwise go to tax, then as the charity, dictate where those funds are spent. Instead of giving the money to someone else to do with as they will, he basically pays himself, so he can dictate what happens with his money.

In turn, he pays little to no taxes, and only has to ensure the money circles around his charity somehow. That may be in the form of paying himself (or others) as a function of running the charity, or sending the money to places and people who he believes can benefit from it (or indirectly, benefit him).

It becomes a large circle jerk of money that otherwise would have gone to the government for taxes.

EDIT: before this gets any worse: he's not making money with tax write-offs. That's literally impossible. The point is to control where your money goes. Here's an example. In situation A, bill, the individual, wants a thing to happen.... Say, it's research into a new form of energy. So Bill takes $1000 from his gross income and pays someone to research that thing to make it a reality. At the end of the year, bill gets a knock on the door, it's the tax man, looking for his cut off the $1000 bill earned. His cut is 30% or $300. Now let's move to situation B. Bill wants the thing to happen, but Bill owns a charity. So Bill donates the money to his charity and gets a tax write off for it in the form of a receipt that he can submit later. As a representative of the charity, bill then pays that $1000 to people to make the thing. At the end of the year, the tax man comes calling for his $300 of bills income. Instead, bill hands the tax collector the receipt for the charitable donation he made with the $1000 of income. The tax man accepts it and leaves with nothing.

The charity is a tax shelter so that bill has more money available to spend on the things he wants to have happen. So more of his money can go towards those things without being taxed.

I hope that clears it up a bit. Jesus, there's a lot of people here that don't understand tax write-offs. There's more that simply don't understand me, or have literacy issues, and assume far too much about what I'm saying here. Yikes.

[-] Kiosade@lemmy.ca 53 points 10 months ago* (last edited 10 months ago)

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!

[-] HauntedCupcake@lemmy.world 42 points 10 months ago* (last edited 10 months ago)

The above post seemed to be saying that:

  1. Bill Gates pays less taxes as he donates to a charity

  2. Bill Gates runs that charity

  3. 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:

  1. Pay himself with the charities money, as he is an employee of the charity

  2. Lobby politicians using the charity's money

  3. 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

[-] 1rre@discuss.tchncs.de 17 points 10 months ago* (last edited 10 months ago)

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, and 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

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this post was submitted on 13 Mar 2024
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