An obscure tax law might force Newman's Own to put itself up for sale

CNBC ^ | 1-10-18 | Ylan Mui

[dynachrome]

Well, the rich need to pay their "fair" share, right?/s

[dynachrome]

The relevant nugget:

“U.S. tax law prohibits private foundations from owning more than a 20 percent stake in a for-profit company after the founder’s death. The penalty for not complying is a 200 percent fine on the value of any additional holdings.”

[Artemis Webb]

What we’ve got here is failure to communicate.

[fella]

Aren’t Foundations supposed to be none profit. Sounds like they feel that they are above the laws that little people must abide by.

[ProtectOurFreedom]

Foundations and non-profits invest their cash somewhere. They can purchase equities just like you and me. As you know, the return on equities sure has beaten bonds the last coup.e of years.

The law says they cannot own more than 20% of the shares in a company. That is a LOT MORE restrictive than the law for you and me.

Would you rather entirely forbid them from owning any stocks?

[alloysteel]

Divest! Divest! Divest!

Boycott, divest and sanction is an approved method of making corporate entities conform when mere admonitions are simply not enough.

[blueunicorn6]

“Shaking the bush, boss.”

[Pontiac]

The company had a five-year grace period after Newman's death to comply with the law. Once that was over, executives requested and received an additional five-year extension to come up with a solution.

You have had and extra five years to figure it out.

Time to comply with the law.

Sell.

[RoosterRedux]

As an aside, Paul Newman and Joanne Woodward lived two towns away from me in Connecticut (I lived in Darien, they in Westport).

They were known to be regular Joes...lived modestly and were respected by the townspeople.

That's quite an honor when compared to what Hollywood produces lately.

[rigelkentaurus]

It might just be me, but looking at the organizations that Newman funds, it sounds like a full employment plan for commies who don’t want to work.

[Governor Dinwiddie]

Dumb tax code. I'd rather a profit making company funding charities than the taxpayers.
 

[Arkansas Toothpick]

Ha, well played, sir!

[Governor Dinwiddie]

Joanne Woodward was a normal southern gal from Mississippi, not the Hollywood type.
 

[867V309]

Newman's Own is a food company founded by actor Paul Newman and author A.E. Hotchner in 1982. The company gives 100% of the after-tax profits from the sale of its products to Newman's Own Foundation (a private non-profit foundation) which in turn, gives the money to various educational and charitable organizations

Newman's charity does great work for seriously ill children. Lots of them.

[RoosterRedux]

Nope.

She's a Jawja gal...Thomasville then Mayretta.

[OttawaFreeper]

I don’t know what it’s like down in the United States, but up here at my local grocery store, the Newman’s Own brand tends to be that bit more expensive than the others.

[colorado tanker]

They didn’t have a good enough accountant or tax lawyer to catch this before now?

[Thibodeaux]

Death tax...... is that the problem?

It must be sold to pay the taxes

[dynachrome]

Where does the money go, is the question. And the law seems quite clear, but liberals can cheat on their taxes freely.

[Ciaphas Cain]

Well, they tend to make good products.

Newman's Own olive oil and vinegar salad dressing is the best I've ever used.