Benefitsss of giving out money to the charity

We have to think deeply:

1. Avoid the tax, avoid to pay tax to the government. I bet those rich people predict that the US government are going to increase the tax in no sooner or later. Especially on those big corporation and rich people.
2. Power to control by making up a charity fund. Let me make up an example here. Assume Jason Chan has $1,000,000 in total. If he open up an charity fund call Jason Chan Charity Fund by splitting half of his money in this fund, he will be the biggest contributor in his fund. What I mean by that is that he will have the power to control the fund. Yes, Jason Chan can control back his own fund.

What will be the result?

1. Low and middle class people will become the one who pay tax
2. Cannot tax the rich and compensate the poor
3. Rich people are sending out message to the government. "Hey, watch out your tax policy in the coming future, we can always play around with tax system in US! "
4. Timothy Geithner is having a serious headache

Why is Timothy Geithner is having a serious headache? Let read the following news~

WASHINGTON (Associated Press) — Treasury Secretary Tim Geithner said that allowing tax cuts for the wealthy to expire would be "the responsible thing to do."

This is the last year for the tax cuts enacted under President George W. Bush. Republicans have generally favored extending all of them. While Democrats are divided on the issue, President Barack Obama has favored allowing the expiration of cuts he says have applied to the wealthiest people.

"It's responsible to let the tax cuts expire that just go to 2 percent to 3 percent of Americans, the highest earning Americans," Geithner told ABC's "This Week" in an interview broadcast Sunday.

Doing so would show the world that the U.S. is "willing as a country now to start to make some progress" reducing long-term budget deficits, he said.

Geithner said he does not believe that higher taxes for those high earners will hurt economic growth.

He also said he "absolutely" believes Congress will act on taxes before the election. That's a touchy issue for Democrats, some of whom may not be eager to address a hot-button issue like taxes so close to Election Day.

Via Industry News

Thanks

Paul ng