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Profit margins is just a jargon thrown around here. A doctor/exec taking back ~$1.5 million an year for sure isn't working on a non profit venture. They are wor
by kamaal 13y ago
Profit margins is just a jargon thrown around here. A doctor/exec taking back ~$1.5 million an year for sure isn't working on a non profit venture. They are working on a venture, which may be a non-profit at an organization level to avoid paying taxes but use that saved taxes to optimize individual salaries.
Either way 'non-profit' venture in nearly all countries have been classic ways to avoid paying taxes. If you are rich, all you need to do is create a non-profit trust- Name it for religious, social or whatever charity. Once you do that you can thrown some peanuts towards a social cause and at the same time park millions worth wealth without paying taxes. Suddenly you can grow your wealth without paying taxes.
This is how it works in my country, India. You will see non-profit trusts, especially religious with billions in assets- Who don't pay a penny in taxes. They will occasionally have some religious festival and may be feed the poor on an auspicious day. While at the same time the trust grows fatter in assets and money everyday as they attract donations in billions, literally!!