2006-06-23 18:31:43 · 12 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
At the maximum federal tax rate of 35%, he'd only get back 35¢ for every dollar he donated. Given that he'd permanently lose 65¢ for every dollar he donated, it would make financial sense to make charitable donations for tax reasons.
Actually, he wouldn't even get that, because he'd far exceed the maximum limits allowable tax credit for charitable donations.
2006-06-24 05:49:54 · answer #1 · answered by VinTek 7 · 2⤊ 1⤋
No.
Avoiding income taxes implies cheating or some other fraudulent activity.
The tax courts hold the opinion that there is NOTHING wrong with a person lawfully paying the least amount of tax required, as long as it is reported correctly. His donation is a personal choice and does not constitute tax avoidance.
Besides, people probably misread how Bill is taxed. Ordinary income would be taxed at the highest rate. Capital gains would be limited to 15%. AND it really isn't anyone's business but his.
2006-06-24 12:59:03 · answer #2 · answered by Molly 6 · 0⤊ 2⤋
Of course, charitable contributions are tax-exempt. However, the William and Melissa Gates Foundation is endowed with $20 billion. I don't care if he gets a tax break or not. Most countries in the world (other than the US) don't give that much to their own people.
I only wish other rich people (read John Kerry) would be as generous with what they have.
2006-06-24 01:40:21 · answer #3 · answered by Karl the Webmaster 3 · 0⤊ 1⤋
IF you had to give uncle sam $34 million dollars at the end of your fiscal year would you? No, I didn't think so.
So yes, most of the charity things from big celebrities are geared to miss out on the income tax. Oprah, Martha Stewart, Bill Gates, Trump, The herst corp...etc. They want to keep those tax write offs! =o)
2006-06-24 01:37:15 · answer #4 · answered by ebay_convert 5 · 0⤊ 1⤋
Bill Gates has given over half his wealth to his foundation. He can't deduct the entire amount he has given to charity on his income taxes--it would exceed limitations based on his AGI. I'm not saying that there was no desire to reduce taxes, but I'm just saying he must have other reasons for doing it as well.
2006-06-24 08:13:04 · answer #5 · answered by NotEasilyFooled 5 · 0⤊ 1⤋
Question isn't really clear. Do you mean that he only does it for a tax credit? I don't think so. He seems very passionate about his charitable cause and is phasing himself out of day to day duties at Microsoft to focus more on his charity work. Does he get a tax credit for giving to charity? Of course. So would you if you gave enough. The tax code is designed to give credit to those that donate to encourage donations.
2006-06-24 01:36:56 · answer #6 · answered by Blunt Honesty 7 · 0⤊ 2⤋
He isn't avoiding income tax... he pays alot in taxes...
His announcement was that he is now going to spend full time working for his charitable organization and only part time for Microsoft. He will still take in a large salary and he will still pay the same taxes on the money he earns.
He is worth over $50 billion and the charitable organization that his and his wife started is now worth $29 billion!
2006-06-24 01:36:29 · answer #7 · answered by anymouse.navy 2 · 0⤊ 2⤋
I disagree. He is soooooooooo rich that if he thinks about avoiding taxes, it is only because he feels he can spend the money better than some bureaucrat that wants to pay $400 for a hammer or any of thousands of other ways the government wastes money without helping the people.
2006-06-24 01:40:58 · answer #8 · answered by Wascal Wabbit 4 · 0⤊ 2⤋
To some extent yes.
2006-06-24 01:36:21 · answer #9 · answered by EMK 3 · 1⤊ 0⤋
what do u think????
I am a business owner, and u would not believe how many people call you to try and donate.
Its crazy....but him and Martha should come out just evan....LOL
2006-06-24 01:36:17 · answer #10 · answered by BEENSAVEDTODAY? 2 · 1⤊ 1⤋