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An obscure tax law might force Newman's Own to put itself up for sale
CNBC ^ | 1-10-18 | Ylan Mui

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 ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: irs; newman; newmansown; paulnewman; taxes
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Well, the rich need to pay their "fair" share, right?/s
1 posted on 01/10/2018 3:05:46 PM PST by dynachrome
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To: 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.”


2 posted on 01/10/2018 3:06:44 PM PST by dynachrome (When an empire dies, you are left with vast monuments in front of which peasants squat to defecate)
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To: dynachrome

What we’ve got here is failure to communicate.


3 posted on 01/10/2018 3:10:18 PM PST by Artemis Webb (Maxine Waters for House Minority Leader!!)
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To: dynachrome

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


4 posted on 01/10/2018 3:10:32 PM PST by fella ("As it was before Noah so shall it be again,")
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To: fella

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?


5 posted on 01/10/2018 3:14:35 PM PST by ProtectOurFreedom
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To: Artemis Webb

Divest! Divest! Divest!

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


6 posted on 01/10/2018 3:14:50 PM PST by alloysteel (Sometimes I have to tell myself, it just isn't worth the jail time.)
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To: Artemis Webb

“Shaking the bush, boss.”


7 posted on 01/10/2018 3:14:55 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: dynachrome
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.

8 posted on 01/10/2018 3:17:48 PM PST by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.L)
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To: dynachrome
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.

9 posted on 01/10/2018 3:17:49 PM PST by RoosterRedux
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To: dynachrome

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.


10 posted on 01/10/2018 3:18:11 PM PST by rigelkentaurus
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To: dynachrome
Dumb tax code. I'd rather a profit making company funding charities than the taxpayers.
 
11 posted on 01/10/2018 3:19:09 PM PST by Governor Dinwiddie (CNN is fake news.)
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To: Artemis Webb

Ha, well played, sir!


12 posted on 01/10/2018 3:19:49 PM PST by Arkansas Toothpick
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To: RoosterRedux
Joanne Woodward was a normal southern gal from Mississippi, not the Hollywood type.
 
13 posted on 01/10/2018 3:22:35 PM PST by Governor Dinwiddie (CNN is fake news.)
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To: dynachrome

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.


14 posted on 01/10/2018 3:23:20 PM PST by 867V309 (Lock Her Up)
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To: Governor Dinwiddie
Nope.

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

15 posted on 01/10/2018 3:25:39 PM PST by RoosterRedux
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To: dynachrome

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.


16 posted on 01/10/2018 3:27:13 PM PST by OttawaFreeper ("If I had to go to war again, I'd bring lacrosse players" Conn Smythe)
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To: dynachrome

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


17 posted on 01/10/2018 3:27:18 PM PST by colorado tanker
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To: dynachrome

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

It must be sold to pay the taxes


18 posted on 01/10/2018 3:29:38 PM PST by Thibodeaux (2018 is looking good)
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To: colorado tanker

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


19 posted on 01/10/2018 3:35:41 PM PST by dynachrome (When an empire dies, you are left with vast monuments in front of which peasants squat to defecate)
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To: OttawaFreeper
Well, they tend to make good products.

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

20 posted on 01/10/2018 3:36:05 PM PST by Ciaphas Cain (Liberalism, as with all else evil, can never create. It can only corrupt.)
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