In order to maintain this value concept, in addition to the strong support of religion, history and social background, it also provides useful guidance in legal regulation.

There are no special and independent laws on charity in the United States. The provisions and provisions on charity are scattered in the Constitution, tax laws, company laws, employment laws and other federal and state laws and regulations.

Tax laws and corporate laws are crucial to the healthy development of charity. The former involves external incentives and supervision of charity, while the latter involves internal governance of charity institutions.

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

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

Donations from individuals and companies to charitable organizations can deduct a certain proportion of income tax, property tax and gift tax. Such incentive mechanisms also encourage people with a lot of wealth to actively engage in charitable activities, whether out of ideal or realistic needs.

Of course, supervision of charitable organizations is also essential. On the one hand, trust behavior in charitable activities should be regulated, and on the other hand, the boundaries between charitable organizations and commercial and government agencies should be strictly distinguished and controlled.

The federal tax law not only establishes a "firewall" to limit 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, campaigns, and substantive lobbying activities.

It not only ensures that the financial resources and influence of charitable organizations are not abused, but also in fact provides strong guarantees for the credibility of charitable organizations.

With these provisions at the bottom, Jenny and Emily finally started to have a grand plan. Of course, this plan was also because of the fourth child's wealth.

The two women had long known the fourth brother's wealth, otherwise they would not have made this idea.

As soon as the fourth brother came back, the two of them quickly told their plan, which was to let the fourth brother take out some money to build a charity fund. They donate regularly to some charity projects every year.

The fourth brother is definitely not happy. Why donate the money earned by labor and capital? Besides, what are the benefits of donating it to me?

After the two introduced the operating model of the charity fund in detail, the old four was happy. Every time they talked about some charity tycoons in the United States, everyone admired them. For example, Bill Gates promised to donate 95% of his property to the Gates Foundation after his death, and the "God of Stocks" Warren Buffett even set up a "giving pledge" organization. Many American rich people joined and promised to donate more than half of their wealth.

On the contrary, in terms of charity, Chinese rich people rarely hear that some people donate 90%, or even half of them, and at most some money will be donated every year.

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How do American rich people avoid taxes by "doing charity" and "donating"?

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Just talk about technology

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

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Every time I talk about some charity tycoons 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 the "God of Stocks" Warren Buffett even set up a "giving pledge" organization. Many American rich people joined and promised to donate more than half of their wealth.

On the contrary, in terms of charity, Chinese rich people rarely hear that some donate 90%, or even half of them, and at most some money will be donated every year.

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

Let’s first talk about the inheritance tax in the United States. It was levied in 1916, up to 40%. Later, in order to avoid the wealthy people taking advantage of loopholes, they donated their property during their lifetime, so they issued another gift tax, up to 50%.

In other words, if these wealthy people immediately take half of their property by the state after giving them, more importantly, the tax policy in the United States is a bit weird, that is, the money on the books cannot be used to pay taxes.

For example, a rich man has $100 billion in inheritance for his children. His descendants must first raise $50 billion to pay the tax, and then get the $100 billion, instead of directly deducting $50 billion from the $100 billion and giving you $50 billion.

This leads to many people not even being able to raise the money for tax payments. They borrow money everywhere, sell houses, assets, etc. to raise 50 billion US dollars, and then they can get the $100 billion US dollars from their parents. If they can't afford to raise 50 billion US dollars, I'm sorry, you can't get the $100 billion US dollars.

So the rich people thought of a way, that is, to set up a private charity foundation and transfer all their property into it, so there is no need to pay taxes. The charter of the private charity foundation can be determined by themselves, and it is up to you who is responsible.

Then let your children be responsible for the foundation, and then you can pay high wages and high consumption. Anyway, you only need to take out 5% of the foundation for charity-related matters every year. In this way, the money will be in the hands of your children again and there is no need to pay taxes.

Of course, there are various operations, such as the foundation donating a building to a university, so that children can study. The United States encourages charity, as well as donors’ personal income tax benefits, charity funds’ income tax exemptions, etc.

In fact, the government also knows that everyone is doing this to avoid taxes, but doing so also ensures that these wealthy people keep their money in the United States because the money is finally returned to the construction of the United States, because these foundations will more or less spend money to develop medical care, poverty relief, etc., which will still make contributions.

If the government wants to impose inheritance tax, maybe these wealthy people will suffer even more if they immigrate to countries that do not collect taxes. Therefore, the government also allows everyone to do this, which is a win-win situation.

In China, whether it is a foundation or a direct donation, it is really donated. It is a real donation. Unlike foreign foundations, it is actually a "fake donation". Therefore, few rich people in China do this, and everyone donates according to their own strength.

The fourth brother couldn't help but sigh: "This evil American emperor can even donate so fresh and refined! He donated labor and capital!"

So the fourth brother transferred the funds in his hands, raised 10 billion US dollars, established his own foundation, and made a clear promise: "The money will be used all of the United States to all kinds of rescues."

Jenny and Emily took the opportunity to fuel the fire and found the media to promote it. For a time, people across the United States learned about a man named fourth master and his charity fund.

The main reason is that this fourth master is still a college student. It is not new to start a business for a college student. But it would be new to be able to make his career so big!

Adding a charitable fund of tens of billions of dollars, this can be called a miracle for a student!

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Dear friends, do you still have pie pie? It has been surpassed by others, and it has fallen from first to third, which is so annoying.

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