New Tax Law Might Force Newman's Own to Put Itself up for Sale

Wednesday, January 10, 2018

New Tax Law Might Force Newman's Own to Put Itself up for Sale

Newman's Own, the popular purveyor of philanthropic pasta sauce, will be forced to put itself up for sale or pay crushing fines this year due to an obscure provision in the tax code.

The household brand is facing a tax bill of up to 200 percent on the majority of its business — a penalty so steep company executives say it would effectively put them out of business. The only alternative, they say, is for the private foundation established by the late Hollywood legend Paul Newman to relinquish control of the company that bears his name.

"It's not a possibility — it's an absolute certainty that we would have to divest," Bob Forrester, chief executive of the Newman's Own Foundation, told CNBC.

On Wednesday, Forrester is slated to meet with lawmakers in hopes of a securing a last-minute legislative fix, potentially as part of any deal to fund the government past Jan. 19. Newman's Own had hoped to tuck a solution into the Republicans' sweeping tax plan that passed late last year, but it was dropped over fears that the provision did not comply with procedural rules in the Senate. Previous attempts to exempt Newman's Own from the hefty fines have garnered bipartisan support...


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