The Patron Saints of Outdoor Recreation are at it again! On Wednesday, Patagonia announced they will be selflessly donating millions that were kicked back due to last year’s tax reform bill.
Large corporations stand to recoup millions in additional tax savings after the bill decreased cooperate tax rates from 35% to 21%.
Patagonia, however, feels there are others who are in more need of that money than themselves.
The less stringent rate reduces what Patagonia would owe by $10 million.
Instead of pocketing this cash, or even reinvesting in the company, they are reinvesting in the one thing that creates the demand for the products they manufacture – the planet and its environment.
In a press release issued Wednesday, Patagonia explains:
Based on last year’s irresponsible tax cut, Patagonia will owe less in taxes this year—$10 million less, in fact. Instead of putting the money back into our business, we’re responding by putting $10 million back into the planet. Our home planet needs it more than we do.
Our home planet is facing its greatest crisis because of human-caused climate disruption. All the extra heat we’ve trapped in the earth’s atmosphere is not only melting the poles and raising sea levels, it’s intensifying drought and accelerating the extinction of species. The most recent Climate Assessment report puts it in stark terms: the U.S. economy could lose hundreds of billions of dollars, and the climate crisis is already affecting all of us. Mega-fires. Toxic algae blooms. Deadly heat waves and deadly hurricanes. Far too many have suffered the consequences of global warming in recent months, and the political response has so far been woefully inadequate—and the denial is just evil.
We have always paid our fair share of federal and state taxes. Being a responsible company means paying your taxes in proportion to your success and supporting your state and federal governments, which in turn contribute to the health and well-being of civil society. Taxes fund our important public services, our first responders and our democratic institutions. Taxes protect the most vulnerable in our society, our public lands and other life-giving resources. In spite of this, the Trump administration initiated a corporate tax cut, threatening these services at the expense of our planet.
We recognize that our planet is in peril. We are committing all $10 million to groups committed to protecting air, land and water and finding solutions to the climate crisis. We have always funded grassroots activism, and this $10 million will be on top of our ongoing 1% for the Planet giving. It will go a long way toward funding grassroots groups; including those dedicated to regenerative organic agriculture, which may be our greatest hope for reversing the damage done to our overheated planet.
In this season of giving, we are giving away this tax cut to the planet, our only home, which needs it now more than ever.
Although the decision seems to include some obvious political undertones, the position taken shouldn’t surprise. Putting their money where their mouth is standard and simply just another page out of Patagonia’s Leaders in Corporate Responsibility and Stewardship of the Earth handbooks.