The next big change... my prediction

by No Apologies 21 Replies latest jw friends

  • No Apologies
    No Apologies

    With all the talk about the new Watchtower format, I thought I would throw out an idea I had recently, on how the Tower could solve its current cash flow problem.

    Its very evident that they do have a serious problem with declining income, and that the real cause of this was the switch to the donation arrangement. Although at the time, it seemed like a smart move that would avoid the nightmare and expense of paying taxes, its clear to see that it has had an impact on the bottom line. Keep in mind the real reasons why they fought so hard to pay taxes.

    The reason that comes to mind first is the simple fact that money that was going to them would now have to be shared with the government. But along with this, it would have required much more accounting at the congregation and even publisher level, tracking "sales", recording them, and then reporting all of this to the government. This would be a real nightmare, and also, it would make the relationship between headquarters and the congregations much more tangible and obvious. This I think, is the real reason they decided to go to the donation arrangement. Look at how they are increasingly afraid of being responsible for Bethelites re insurance, workers compensation, retirement, etc. They need to have as little connection between the congregations and the org as possible. They absolutely do not want to be found in any way liable for what goes on at the local level.

    So, I thought to myself, what is the answer? How can they go back to enjoying a steady stream of income, without having to deal with taxes? And then it hit me. Spin off the publishing entirely.

    Here's how it works: Kingdom Publishing Inc. is formed. Its sole purpose will be to product literature that just happens to be used by Jehovah's Witnesses in their own personal religious worship. It will sell the literature to individuals. Yes, as in, all items will be clearly marked with a price, and the dub will buy what he needs. The company will more than likely end up collecting sales tax, but like all businesses, the end customer will pay the tax, not the company.

    At the same time, a new simplified field service arrangement will be introduced: publishers will no longer ask for any kind of donation, they will simply offer the literature free of charge to good-hearted ones who show some level of genuine interest. Since publishers are not collecting for the literature, there is no paperwork needed, no taxes need to be charged or recorded, no connection between the publisher and the Watchtower or any of its subsidiaries.

    Now, of course, this means that the government is going to be getting a cut. But that's fine, like I said, its the publisher that will be paying it, the printing company just collects it. It also means, the publishers are left financing the preaching work- guess what, they already are!! Seriously, how much literature that publishers pick up at the hall, actually results in someone in the house-to-house work making a donation? In my experience, very little. Most publishers don't even ask for a donation anymore, its too awkward and embarrassing. So, really, this would not be that big a shift. And, as I mentioned on another thread, this makes it even easier for this third-party publishing company to take on other printing, for other customers, and make even more $$$.

    And also, look how much JWs with money like to spend it on fancy leather-bound Bibles, TMS workbooks, song books, etc. They could go to town with this, "get your Bible monogrammed for a small added fee!"

    Anyway, just my 2cents on what may happen next. Any thoughts? Have I missed anything as to why this wouldn't fly?

    No Apologies

  • SirNose586
    SirNose586

    Interesting idea. I wonder why the GB hadn't thought of it. Maybe, in the end, they just really hate paying taxes...

  • jwfacts
    jwfacts

    I dont see why they dont just start paying the tax. As you say, sell to the publisher and pay tax on the profit. Most companies that make large profits but can hide most of it effectively. The publishers can sell the mags, and it would be up to them as to how to report it. In Australia the publishers would not have to pay tax on it as it would be classified as a hobby. Any business that generates a loss is classed a hobby, and since the profit on the mags would be far less than the petrol costs etc the govt would ignore it at the publisher level.

  • vitty
    vitty

    Well youve now given the WT "new light" well done

  • candidlynuts
    candidlynuts

    sales taxes weren't what they were scared of..its property taxes on all those multi million dollar properties they want to avoid

  • jayhawk1
    jayhawk1

    Well, they could avoid the property tax too with that type of arrangement by outsourcing the printing. "Kingdom Publishing Company" could just be an office only that coordinates the printing while legit printing companies do the actual printing. That way they could charge the JWs whatever price is needed, pay the sales tax and be done with the rest.

  • zack
    zack

    They weres cared of, imo, of what sales taxes would lead to: financial audits. They DO NOT WANT to open their books to anyone. They are the

    antithesis of transparency.

  • garybuss
    garybuss

    It's called third party vendor. I think it's a good guess. Lots of publishers use third party vendors. One example of a third party vendor, is Amazon.


  • kid-A
    kid-A

    It will sell the literature to individuals. Yes, as in, all items will be clearly marked with a price, and the dub will buy what he needs.

    The problem is, most dubs are dirt poor. The ones that do have money, are usually the least active in the door-banging, and are exceptionally tight-wad with their money. While the poorer ones tend to be the most zealous and hence are the ones that would need to spend the most on the literature but be the least able to afford it.

    Finally, the Pioneers, by and large, are completely destitute, so at the very least the Borg would have to provide the literature pro bono to the Pioneer drones or they would completely dry up the door banger industry.

  • Lumptard
    Lumptard

    If they sold the lit. to the R&F, then they could no longer denounce other religions for trying to get money out of their adherants.

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