Less Than Six Months Left to Stick It To Max Baucus!

In my ongoing efforts to give the likes of Max Baucus a lesson in supply-side economics, here is an except from a letter I posted today to the Chairman of a publicly traded company in which I own a decent stake...

"Turning to slightly longer term considerations, the 15% tax rate on dividends established by the Jobs and Growth Tax Relief Reconciliation Act of 2003 will likely sunset at the end of this year barring action from Congress to extend it. In order to return cash to shareholders in the most tax efficient way, we encourage the Board of Directors to consider altering its dividend policy if the current dividend tax rate is indeed allowed to expire. In such a case, we recommend that the Board 1) declare a special dividend equal to 3 times the normal annual dividend...to be paid before the sunset provisions take effect, 2) cease regular dividend payments in 2009 and beyond, and 3) commit to a share buyback program sufficient to retire at least 1% of the outstanding shares for every year in which regular dividends are not paid, subject to the share price level."

I'll keep readers posted as to whether management is on board.

Background here and here and here.