JoshuaPundit: Ah, ‘progressives’..they always have great ideas on how everybody should pay their fair share. Except them, of course.
Multimillionaire Actress Jane Fonda’s charitable foundation is an interesting example of this principle.
According to the IRS records, with nearly $800K in the bank as of 2011, the last fiscal year covered by their 2012 return, Jane Fonda’s private charitable foundation hasn’t hasn’t donated a dime since 2006. According to the IRS’s own rules, a private charitable foundation has to donate at least five percent of its assets, or face stiff financial penalties.This was designed to stop people from misusing charitable foundations as a tax dodge and a parking place for tax free income:
While Fonda’s foundation has not been making donations, the group has tried to grow its stash via the stock market. For example, the foundation’s last tax return lists 166 separate trades–involving thousands of stock shares–that netted about $2200.
The Fonda foundation’s returns show that most of its assets were provided years ago by the performer herself, though more than $320,000 came from a Connecticut firm that has booked speaking engagements for the two-time Academy Award winner.
In other words, Fonda shielded taxable income and the firm that booked her speaking engagements got a nice tax deduction.
The Jane Fonda Foundation lists Fonda on its tax filing as the foundation’s president and chairman of the board, and reports that she devotes 10 hours a week to the charitable foundation. This is important, because IRS rules allow someone like a celebrity to take a charitable deduction for time spent working for a charity based on their ‘usual fee’. In Fonda’s case, that’s 520 hours or 22 days if we consider 24 hours a full work day. If we base it on a more normal 8 hour work day, Jane Fonda is able to take a deduction for ‘charitable work’ at her normal rate for something like 65 days, over two months.
Even more interesting, this has been going on since 2007, and the IRS, busy targeting conservative donors and sabotaging attempts by conservative groups to obtain 501c status has prosecuted her at all.
The rules, you see, are for the little people who vote wrong and donate wrong.
Some people never change…
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