Commentary
Zuckerberg Responds To Critics Over Philanthropy Plans
- by Erik Sass , Staff Writer @eriksass1, December 4, 2015
Boy, we’re a piece of work. Only in 21st century America could someone announce plans to give away 99% of their fortune, worth around $45 billion, and trigger a storm of criticism for being selfish and insincere.
In fact, the response to Mark Zuckerberg’s announcement, following the birth of his daughter, kind of sums up much of what is wrong with our society -- a mix of kneejerk anti-capitalism, slack-jawed envy, and profound ignorance of the subject actually under discussion, all jumbled up in a paper bag and huffed like glue.
Because stupid people are good at forming opinions quickly, Zuckerberg’s plan to give away the vast majority of his fortune was swiftly condemned as a typical plutocratic ploy to avoid paying taxes.
Basically it’s the standard conspiracy theory, popular among people who get most of their news accidentally, holding that the Chan Zuckerberg Initiative is a private slush fund -- as if the notorious hardasses at the IRS will somehow turn a blind eye to one of the world’s richest people frolicking nude in piles of cash intended for African development.
After he finished banging his head on his desk, Mark Zuckerberg was kind enough to clarify the fact (publicly available and easily discovered with a minimum of Internet research, which the stupids don’t do) that the Chan Zuckerberg Initiative is in fact an LLC, meaning they still pay taxes on the money.
In his Facebook post Zuckerberg wrote: “The Chan Zuckerberg Initiative is structured as an LLC rather than a traditional foundation. This enables us to pursue our mission by funding non-profit organizations, making private investments and participating in policy debates -- in each case with the goal of generating a positive impact in areas of great need. Any net profits from investments will also be used to advance this mission.”
He continued: “By using an LLC instead of a traditional foundation, we receive no tax benefit from transferring our shares to the Chan Zuckerberg Initiative, but we gain flexibility to execute our mission more effectively. In fact, if we transferred our shares to a traditional foundation, then we would have received an immediate tax benefit, but by using an LLC we do not. And just like everyone else, we will pay capital gains taxes when our shares are sold by the LLC.”
So there you have it for those who care, although I’m guessing the stupids didn’t make it past the first sentence. In conclusion, haters gon’ hate.
Erik Sass is editor of Publishers Daily. You can reach Erik at eriksass@gmail.com.
Jesse Eisenberg portrayed Zuckerberg as a jerk and those who saw the movie have apparently formed a lasting impression, rightly or wrongly.
this is Classic, this is why there are tax benefits, in order to facilitate philanthropy. What would they want instead, fund Bernie Sanders campaign? This is the kind of thing that lowers confidence in the future. Not the fact that someone made $45 billion dollars by creating a product that a quarter of the world's population uses. I love your line about banging his head on the desk. For me, I shake my head, close my eyes, and pick my jaw up off the floor when I read those knee-jerk reactions.
I have just one thing to say to Mark Zukerberg: Thank You.
So the power of fbeast, people making comments about the LLC Zuckerberg and his people have set up probably do not know what an LLC and how the tax system works at that level of income, rears its head. A rush to judgement without knowlege is the basic problem. And perhaps he contributes to Bernie Sanders, too, or not. Let's not rush to judgement. His friends may know, but his "friends" don't. He knows he created the platform of critisizers.