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The Microsoft Millionaires Come of Age
iseff writes "The NYTimes is running a story about the ways in which Microsoft millionaires are putting their money to use. According to the story, there is somewhere around 10,000 Microsoft made millionaires spending money on various pet projects. For example, former programmer Chris Peters bought the PBA (Professional Bowlers Association), while Stephanie DeVaan founded a political action committee and Rich Tong founded Ignition Partners, a VC firm."
"And one William Gates put $53 million back into the economy the old fashioned way by building a house."
Along with over $25 billion to charitable causes.
http://www.gatesfoundation.org/default.htm
He deserves the house, I say.
- Rory [Microsoft Employee] | Free dirt: neopoleon.com
Tried shopping for a house in New York City? Being a millionaire used to mean you were rich. Now it just means you are middle class with some savings.
Apparently you don't understand what it means to charge too much.
Charging too much puts you in the poorhouse. Charging what the market is willing to bear makes you wealthy.
It sounds to me as if they are charging correctly. Now, if you want to argue that they have monopolist tactics and such, well, you could build an argument, but to say that charging too much made them wealthy merely shows that you are arguing that MS should be some sort of charitable organization.
I don't think that I would ever go to any company VP (and I know a few) and tell them "You know, we make too much money around here, lets lower prices."
After all, Gates said he's going to give away all his money to charity before he dies. Most millionaires would spend this money on their childern to have many generations of wealth, fancy cars with spinning rims, or gambling in Las Vegas. I'm sure you've all seen MTV Cribs.
:-]
$75,000 under $100,000 - 8,903,894 returns
, ,id=96981,00.html
$100,000 under $200,000 - 8,469,199
$200,000 under $500,000 - 2,018,372
$500,000 under $1,000,000 - 355,617
$1,000,000 under $1,500,000 - 85,479
$1,500,000 under $2,000,000 - 36,492
$2,000,000 under $5,000,000 - 52,157
$5,000,000 under $10,000,000 - 12,266
$10,000,000 or more - 6,836
21% of the tax returns pay roughly 55.9% of the Federal Income Tax, the 6836 at the top, pay 3% of the Federal Income Tax
http://www.irs.gov/taxstats/indtaxstats/article/0
Can someone tell me the tax advantages of "charitable causes"? I often heard the philanthropic interests of the rich often had more to do with managing their taxes. Also, to what extent are his charitable donations are "real", either by not being tax write-offs, or, for example, software to schools that really costs FAR less than its advertised value and is actually of strategic benefit.
I don't understand why this is a problem. A "company" has goals. They figured out, as a company, how to achieve those goals. The people rewarded are the owners, and sometimes the employees. If the employees didn't get the cash, it'd have just gone to the owners. This should be perceived as a great thing!
The wealth of the company, and their employees is a testiment to the fine job they did, as measured by the votes of their customers, in the form of money spent.
Any comments that this is obscene is pure jealousy.
the $25 billion he's donated to charity probably would've done more good if left in the hands of the people who were overchargd. ...or the people who were 'overcharged' could have chosen not to purchase the product, if they happened to think that it wasn't cost-effective. There are always alternatives.
Just a thought about free markets.
"We have to go forth and crush every world view that doesn't believe in tolerance and free speech." - David Brin
But by 2002, she was itching to do more, so she put her wealth to work in support of abortion rights and helped to found a political action committee called Washington Women for Choice.
Although Republicans are usually pro-business, if it becomes common knowledge that Microsoft employees are dumping money into "abortion rights" groups, that could make the current administration's position on antitrust a lot less friendly towards Microsoft.
LK
"Hi. This is my friend, Jack Shit, and you don't know him." - Lord Kano
Not only do you get the tax advantages of being able to write off a portion of the charity, but if you happen to be so rich to afford your own "charitable foundation", there are other benefits as well!
For example, you can afford to pay your friends and family handsomely for their management of the foundation. (In politics this would be called a patronage appointment) In Bill's case, his Dad and a former Microsoft executive. Although I'm sure they just happen to be exactly the right kind of people to lead such an esteemed organization.
Also, you get the glamour and praise of fellow socialites and the plebs at large. This is especially helpful if you are battling an unfortunate image as a cold-hearted corporate capitalist. Now, folks like the grand-parent poster will kindly note your philanthropy at every turn. This is true even if your foundation does very little charitable work.
For example, if you check out the financials of the foundation you can see that they pay out three times less in contributions than what they make from investments!