Posted on 01/10/2018 3:05:46 PM PST by dynachrome
An obscure provision in the tax code could force the foundation started by Paul Newman to sell the food company Newman's Own. The foundation is trying to coax lawmakers to shield Newman's Own from an onerous tax bill that could force divestment. Executives are hoping Congress will put a last-minute fix in any potential deal to fund the government past Jan. 19.
(Excerpt) Read more at cnbc.com ...
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.”
What we’ve got here is failure to communicate.
Aren’t Foundations supposed to be none profit. Sounds like they feel that they are above the laws that little people must abide by.
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?
Divest! Divest! Divest!
Boycott, divest and sanction is an approved method of making corporate entities conform when mere admonitions are simply not enough.
“Shaking the bush, boss.”
You have had and extra five years to figure it out.
Time to comply with the law.
Sell.
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.
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.
Ha, well played, sir!
She's a Jawja gal...Thomasville then Mayretta.
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.
They didn’t have a good enough accountant or tax lawyer to catch this before now?
Death tax...... is that the problem?
It must be sold to pay the taxes
Where does the money go, is the question. And the law seems quite clear, but liberals can cheat on their taxes freely.
Newman's Own olive oil and vinegar salad dressing is the best I've ever used.
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