Patagonia founder's big donation potentially saves him over $1 billion in taxes -- and shows how the

[Yo_Mama_Been_Loggin]

wealthy aren't subject to the same rules as the rest of us

It was the business proclamation heard around the world: Patagonia founder Yvon Chouinard was giving away his company's wealth to fight climate change. What wasn't heralded so loudly: He could be avoiding more than a billion dollars in taxes while doing so.

"Instead of 'going public,' you could say we're 'going purpose,'" Chouinard said in a statement announcing the move. "Instead of extracting value from nature and transforming it into wealth for investors, we'll use the wealth Patagonia creates to protect the source of all wealth."

Earlier this year, another businessman from a different side of the political spectrum – Chicago's Barry Seid – used a similar structure to donate his $1.6 billion business to a nonprofit that advocates for conservative causes, including restricting abortion access and appointing conservative judges to the federal bench, according to a report in the New York Times.

Seid was able to avoid paying taxes on the sale of his business, an electronics manufacturer called Tripp Lite, by donating it to the nonprofit Marble Freedom Trust. And he got to make sure his pet causes were cared for — much like Chouinard has done with the donation of Patagonia to his own nonprofits that he says will advocate for climate change.

https://www.msn.com/en-us/money/markets/patagonia-founder-s-big-donation-potentially-saves-him-over-1-billion-in-taxes-and-shows-how-the-wealthy-aren-t-subject-to-the-same-rules-as-the-rest-of-us/ar-AA11VeCs

[harumph]

1. This is a poorly written hit piece.

There is no comparison to Barry Seid and his objectives. So what if Chouinard (could) be avoiding taxes.
Patagonia as restructured stands to contribute 100 million a year to combat climate change.

Specifically, the MSN hit piece ENTIRELY ignores the starkly contrasting MORAL dimensions of the
actions of Seid and Chouinard and attempts to tie them together under the "all rich people cheat on their
taxes..," trope. What a cynical piece of shit.

[July]

2. Not according to yesterday's New York Times.

Two trusts were created, the Patagonia Trust and the Holdfast Trust.

re the Patagonia, per the Times:

“Because the Chouinards donated their shares to a trust, they will pay about $17.5 million in taxes on the gift.”

re the Holdfast:

“Because the Holdfast Collective is a 501(c)(4), which allows it to make unlimited political contributions, the family received no tax benefit for its donation.”

re the different approach of Barry Seid:

“But Mr. Seid took a different approach in giving 100 percent of his electronics company to a nonprofit, reaping an enormous personal tax windfall as he made a $1.6 billion gift to fund conservative causes, including efforts to stop action on climate change.”

Don’t have a link, because I just fished out the actual paper from our recyling bin, but it’s from the September 15th Business section.