You know they say about life: the only two certainties are death and taxes. There’s not much we can do about dying, but taxes are pretty variable — and they can be utilized in totally unexpected ways.
Taxes are always a big political issue.
Whatever the current issues of the day, it’s a safe bet that taxes will come up in any election cycle, just about anywhere in the world. They’re necessary, but they’ve become politicized.
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President Trump is big on tax stuff.
Bombastic as he may be, Trump has walked the party line on a few issues, notably corporate tax cuts. His administration has made deep tax cuts that benefit some big companies.
Enter Patagonia.
A clothing line that makes durable stuff for outdoorsy people, Patagonia is worth over $200 billion. They saved all kinds of money on taxes when Trump got elected.
They don’t think they should be saving this money, though.
Patagonia CEO Rose Marcario says her company owes $10 million less in taxes after Trump’s tax cuts. But she doesn’t want these savings. Instead, she wants to see a greener planet — and she’s putting her money where her mouth is.
She outlined her stance.
In a post on LinkedIn, Marcario outlined the details, calling the tax cuts “irresponsible.” She wasn’t done, though — and the steps she described should serve as an inspiration for other big companies.
They’re re-investing the money.
That $10 million isn’t going to the feds and it isn’t going back to Patagonia. Instead, Marcario says that it’ll be invested into initiatives near and dear to any environmentalist’s heart.
It’s a bold position.
“Instead of putting the money back into our business, we’re responding by putting $10 million back into the planet,” she wrote on LinkedIn. “Our home planet needs it more than we do.”
Climate change is real.
Referrring to a federal report on climate change, Marcario re-emphasized its points: basically, if we don’t start making real changes, real soon, our planet could be uninhabitable within a few decades.
Yes, but…
Like many aspects of capitalism, tax cuts can be well-intended and might work in theory. But when applied to the real world, greed takes over far too often. We rarely see corporate initiatives like this.
Exactly.
Most businesses take tax cuts and re-invest them. I mean, I do the same when I get a tax refund. But we need big change from these big companies, and Patagonia is leading the way right now.
Of course, Patagonia has a vested interest.
If you’re the outdoorsy type, the prospect of global warming should be absolutely terrifying. Just imagine a planet where you can’t go for a refreshing winter hike in the snow.
The move made an impact.
Besides the audacity of it, Marcario’s LinkedIn post didn’t pull any punches. “Far too many have suffered the consequences of global warming, and the political response has so far been woefully inadequate,” she wrote.
Will others follow her lead?
The world is full of good-hearted individuals. But on an individual level, not much can change. It’s when big companies start putting ideals ahead of profits that meaningful changes can start to happen.
We’ll see what happens next.
With her open letter, Marcario has pretty much singlehandedly redefined corporate responsibility. Lots of companies pledge it, but how many are willing to forego their tax savings to make a point?
What do you think?
It’s a bold move, Cotton, but will it pay off? We live in a world that seems woefully unprepared for the future. Do you think changes like this could lead to more positivity down the road?
