Latest news with #BlackstoneGroup
Yahoo
22-05-2025
- Business
- Yahoo
‘Money grab': Why Wall Street donors are sweating the tax bill
Wall Street philanthropists — including some major supporters of the GOP — are about to get hit with a big tax bill if House Republicans get their way. Large charitable foundations overseen by industry heavyweights like Blackstone Group's Steve Schwarzman and Citadel's Ken Griffin could soon see their tax rates double or even triple under the 'big, beautiful bill' that House leaders are pushing to the floor. Industry representatives and nonprofit groups say the looming tax hike on private foundations represents a threat to private philanthropic efforts that they say Republicans should be elevating, rather than punishing. 'The foundation world fills many gaps,' Kathy Wylde, the president and CEO for the Partnership for New York City, a nonprofit organization that represents the city's top business leaders. 'To discourage investment is counterproductive to the president's goals of getting some of these functions into the private sector and out of government.' The plan to raise tax revenue from philanthropic organizations established by top financiers underscores the ascendance of Republican lawmakers who are wary of Wall Street's long-held influence over party leadership. While the overall bill is projected to benefit top earners, its targeting of private foundations — along with provisions that raise taxes on college endowments and establish new levies affecting nonprofits — reflects populist frustrations with tax-exempt entities that are perceived as having boosted progressive causes. But zeroing in on those organizations — which include family-run nonprofits that are used to fund hospitals, religious organizations and charter schools — also risks frustrating the party's traditional allies within the industry. Leon Cooperman, the billionaire investor and philanthropist, said the GOP's budget bill misses the mark, and that he expects the tax hit on private foundations to dent philanthropic efforts. Cooperman, a longtime Republican donor, established a tax-exempt family foundation in 1982 that has contributed hundreds of millions to charities, hospitals and educational institutions. 'The government continues its policy of tax and spend rather than focus on expense reduction. We don't have a revenue problem but rather an expense problem,' he said in an email, later adding that the tax hit on large private foundations 'won't effect [sic] me but I think [it will] adversely effect [sic] giving.' The bill — written to deliver on President Donald Trump's tax, border and energy priorities — would charge private foundations higher excise taxes on investment income based on their size. Institutions with between $50 million and $250 million of assets would be charged 2.8 percent, those with more than $250 million would be charged 5 percent, and those with $5 billion or more would be charged 10 percent. The tax rate on smaller institutions' investment gains would remain unchanged at 1.4 percent. The overall cost of the Republican legislation is likely to be enormous. Estimates from the Yale Budget Lab and Penn Wharton Budget Model project that the current framework would add $3.4 trillion to the debt over the next decade, and holding onto any new revenue sources has been a priority for Republican leaders looking to fend off a revolt from deficit hawks. The Joint Committee on Taxation estimates that the new foundation taxes would raise close to $16 billion over the next decade. Members of both parties have been skeptical of the influence wielded by major private foundations and how they might be used or fund political efforts. Private philanthropies launched by the Clinton and Trump families have long been treated as political punching bags — Trump's foundation was eventually dissolved by New York authorities — and populist lawmakers have frequently made mincemeat of tax-exempt groups that they say improperly padded their coffers. Still, the House GOP's push to raise billions through new taxes on foundations has chilled leaders of groups who helped steer the wealthy's philanthropic efforts into endeavors that are traditionally aligned with the right. 'They're looking at the elites versus the non-elites. There's a lot of money in foundations who would be defined as the elite, and therefore they like to see that money go elsewhere,' said Lawson Bader, the president and CEO of DonorsTrust, a donor-advised fund and 501(c)(3) that's a powerful force in Republican fundraising circles. This 'seems to be really nothing more than a money grab that is — I think — tinged with some political DNA that has me uncomfortable.' Nevertheless, the private foundation tax is broadly expected to be included in the House bill upon passage. Two tax lobbyists, who were granted anonymity to discuss the negotiations around the bill, said they expect larger foundations to step up their outreach on Capitol Hill in the coming weeks to try to deter Senate Republicans from including the provision in their bill. Washington advocacy organizations representing nonprofits, including the Philanthropy Roundtable and Council on Foundations, have been pushing back publicly on the new levies. While the tax hike takes the biggest swing at large foundations — think major philanthropies like the Gates Foundation or George Soros' Open Society Foundations — nonprofit advocates are warning that smaller foundations may be forced to curtail grants or gift giving to prepare for a steeper tax bill. 'They see the ripple,' said Jenn Holcomb, the vice president of government affairs and legal resources at the Council on Foundations. 'They know this is going to have a broader impact beyond just private foundations.' Ridgway White, the president and CEO of the Charles Stewart Mott Foundation, said his Flint, Michigan-based foundation may have to cut back support for local organizations if its investment income is taxed at much higher rates. 'The unfortunate thing is that the dollars being taxed aren't going to come back to communities like Flint,' said White, whose 99-year-old organization had roughly $3.7 billion of assets as of 2023. 'That would mean that there's less programs for after school, less money to support maintenance of parks — it's across the board — less money going into our cultural center, institutions, Catholic Charities, food bank, warming centers, food pantries. Across the board.' 'The Mott Foundation has, over time — if you account for inflation — granted $9 billion to our local community and communities across the world,' he added. 'I would argue that that benefit far exceeds any kind of tax benefit that was received by C.S. Mott in 1926.' CORRECTION: Correction: A previous version of this story misstated the origins of the Partnership for New York City.
Fibre2Fashion
18-05-2025
- Business
- Fibre2Fashion
India's Maharashtra inks MoU to build industrial, logistics parks
India's Maharashtra state recently signed a memorandum of understanding (MoU) with Blackstone Group's subsidiaries, XSIIO Logistics Parks and Horizon Industrial Parks, which will bring in ₹5,127 crore (~$599 million) worth foreign direct investment (FDI) and create 27,510 jobs. Signed between state industries secretary P Anbalagan and president of Horizon Industrial Parks R K Narayanan, the MoU aims at developing over 10 modern logistics and industrial parks across the state's key industrial and multimodal logistics hubs, a statement from the Chief Minister's Office (CMO) said. India's Maharashtra state has signed an MoU with Blackstone Group's subsidiaries, XSIIO Logistics Parks and Horizon Industrial Parks, which will bring in $599 million worth FDI and create 27,510 jobs. The MoU aims at developing over 10 modern logistics and industrial parks across key industrial and multimodal logistics hubs, including Nagpur, Bhiwandi, Chakan, Sinnar and Panvel. These logistics parks will be developed in key locations, including Nagpur, Bhiwandi (Thane district), Chakan (Pune), Sinnar (Nashik) and Panvel (Raigad). The parks will be aligned with the Maharashtra Logistics Policy 2024, and will feature green, digitally-enabled infrastructure focused on sustainable development and job creation. Chief Minister Devendra Fadnavis said the collaboration will set up a robust foundation for manufacturing, warehousing and supply chain excellence in India. Fibre2Fashion News Desk (DS)
The Hindu
15-05-2025
- Business
- The Hindu
Maharashtra signs ₹5127 crores MoU for developing multimodal logistics hubs
Maharashtra government and Blackstone Group's X-Space Logistics Parks and Horizon Industrial Parks signed a Memorandum of Understanding (MoU) in the presence of Chief Minister Devendra Fadnavis, with aim to develop modern logistics and industrial parks in major industrial and multimodal logistics hubs across the State. The MoU involves developing over 10 modern industrial and logistics parks in Maharashtra, spanning across 794.2 acres of land with a built-up area of 1.85 crore square feet. It will attract a total foreign direct investment (FDI) of ₹5,127 crore and create 27,510 direct and indirect employment opportunities, as per the CMO. The logistics parks will be developed various regions, including Nagpur, Bhiwandi, Chakan, Khandwa, Sinnar, and Panvel. The projects implemented will be environmentally friendly, digitally enabled, and employment generation oriented, aligning with the Maharashtra Logistics Policy 2024. 'The partnership will create world-class industrial and logistics hubs in Nagpur, Mumbai and other locations, enabling a robust infrastructure for manufacturing, warehousing, and supply chain excellence in India,' said Mr. Fadnavis.
Indian Express
14-05-2025
- Business
- Indian Express
Blackstone to invest Rs 5,127 crore in state; 27,510 jobs on cards
In a major boost to Maharashtra's industrial infrastructure, the state government on Tuesday signed a Memorandum of Understanding (MoU) with global investment firm Blackstone Group for the development of over 10 logistics and industrial parks across key locations in the state. The deal, worth Rs 5,127 crore in foreign direct investment (FDI), is expected to create around 27,510 direct and indirect employment opportunities. The MoU was signed between the state's principal secretary of Industries, Dr P Anbalagan, and R K Narayanan, president of Horizon Industrial Parks — a Blackstone entity — at Sahyadri Guest House in Mumbai. The ceremony was held in the presence of Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde. Senior government officials including Principal Secretary to the CM Ashwini Bhide, MIDC CEO P Velarasu, and Blackstone's top leadership — including Tuhin Parikh, Alok Jain, and Ashish Agarwal — were also present. According to officials, the parks will be developed on 794.2 acres of land, with a total built-up area of 1.85 crore sq ft. The facilities will come up in locations such as Nagpur, Bhiwandi, Chakan, Khandwa, Sinnar, and Panvel — regions that are fast emerging as strategic logistics and industrial corridors. 'These projects are aligned with the Maharashtra Logistics Policy 2024 and will focus on sustainable, tech-enabled infrastructure that boosts employment and economic growth,' the government said in a statement. Speaking at the event, Fadnavis termed the agreement 'transformative' and said it would help create global-standard industrial and logistics hubs in Maharashtra. 'This initiative strengthens the backbone of India's manufacturing and supply chain ecosystem and reflects our commitment to making Maharashtra the preferred destination for investment,' he said. The government added that the proposed parks will be environment-friendly and include digital infrastructure to improve efficiency and connectivity in the state's logistics sector.
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Business Standard
14-05-2025
- Business
- Business Standard
Golden swords, Arabian horses: Trump gets a royal welcome in Saudi Arabia
The fist bump seems so long ago. Three years after Joe Biden's cursory greeting with Crown Prince Mohammed bin Salman, Donald Trump luxuriated in an extravagant royal welcome as he arrived in Saudi Arabia on Tuesday. Concerns about human rights and fossil fuels in the oil-rich autocracy were nowhere on the agenda. Instead the day was all about cutting deals and celebrating a personal relationship that has endured through scandal and political turmoil. I really believe we like each other a lot, Trump said as they sat on golden chairs under elaborate chandeliers in the royal palace. During a speech later in the day, the president described Prince Mohammed as an incredible man" and my friend. The feeling was clearly mutual. The crown prince addressed his guest as my dear President Trump," and the Saudis played his campaign anthems God Bless the USA. and YMCA during his appearance at an investment forum. For the US Republican president, the visit was a return to the international stage after his comeback election victory (Exactly one year ago, he was on trial in a hush money case and listening to his former lawyer testify against him in a New York City courtroom.) Although Trump recently attended the funeral of Pope Francis in Rome, Saudi Arabia was originally intended to be his initial overseas destination, just like in his first term. It served as a gilded debut for a foreign policy focused on securing cash infusions for American businesses. Trump pumped his fist as he stepped out of Air Force One, then descended the stairs to shake hands with Prince Mohammed, who greeted his guest on the tarmac in a rare display of respect. The crown prince, Saudi Arabia's de facto ruler, has been eager to rehabilitate his global image after the killing of journalist Jamal Khashoggi, which US intelligence officials accused him of ordering. He's also seeking an economic revival for the kingdom to reduce its reliance on fossil fuels, and the occasion was an opportunity to demonstrate that the floodgates for investment were open again. The guest list for an elaborate luncheon was stuffed with corporate executives, including Ruth Porat of Google, Stephen Schwarzman of the Blackstone Group, Jane Fraser of Citicorp, Alex Karp of Palantir and Jensen Huang of NVIDIA. Also attending was Elon Musk, the world's richest person and a top adviser to Trump. As Air Force One approached Riyadh, Saudi pilots in six American-made F-15 fighter jets escorted the plane. After a traditional coffee ceremony inside the royal terminal at the airport, Trump's limousine was flanked by riders on white Arabian horses carrying American and Saudi flags. A honor guard was lined up with golden swords. (Missing from the visit was the orb, a glowing sphere a little bigger than a bowling ball that Trump memorably posed for photos with during his trip to Riyadh in his first term.) Trump has downplayed traditional American alliances in Europe, and often expressed exasperation with the country's trading and defense partners. But there was no such hesitation in Riyadh, and he said the relationship between the US and Saudi Arabia has been a bedrock of security and prosperity, Biden received little of the same pomp when he visited three years ago. He had previously criticized Saudi Arabia as a pariah but decided to travel to the kingdom anyway in an implicit acknowledgement that it was too influential of a global player to ignore. The crown prince greeted the Democratic president at the palace, which is where the two leaders exchanged their fist bump. Their only other joint public appearance was all business, as they sat across from each other at a large conference table, flanked by top advisers. Later that year, OPEC+ announced it would reduce oil production in a blow to Biden, whose political fortunes were being battered by inflation. The Democratic president acknowledged that it was a disappointment, and it says that there are problems in the US-Saudi relationship. But there was no such friction during Trump's visit. In his speech, the president flattered Saudi Arabia for its economic development and suggested that foreign leaders shouldn't be "giving you lectures on how to live and how to govern your own affairs. "You achieved a modern miracle the Arabian way," Trump said. Prince Mohammed, sitting in the audience, placed his right hand on his heart and beamed. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
