Tax Avoidance-a-palooza
...or, if you will, Laffer-mania!
Did I say that companies would be paying out big, special dividends before the end of the year to allow shareholders to benefit from the expiring low tax rate on dividends? Yes, I did. And as far back as 2009.
Well, now it's becoming something of a major trend as numerous companies and some very high-profile companies are scrambling to avoid the fiscal cliff. Costco is paying out an extra $3 billion. Dillard's is paying out 25 times their annual regular dividend (that's the next 25 year's worth of divviess now!). This is the cash that Obama caused to be hoarded and that he and other Democrats lamented wasn't being put to work to create jobs. It's now going out into the world via shareholders' accounts. What gets done with that money - spent or reinvested - remains to be seen.
Shall we listen intently for the cries of rich, hypocritical, Obama-loving trust fund babies lamenting the avoidance of taxation that they all so self-righteously proclaim that we need?
Oh, did I mention that it seems all the millionaires in the UK up and disappeared when tax rates went to 50%?? Yup.
Did I say that companies would be paying out big, special dividends before the end of the year to allow shareholders to benefit from the expiring low tax rate on dividends? Yes, I did. And as far back as 2009.
Well, now it's becoming something of a major trend as numerous companies and some very high-profile companies are scrambling to avoid the fiscal cliff. Costco is paying out an extra $3 billion. Dillard's is paying out 25 times their annual regular dividend (that's the next 25 year's worth of divviess now!). This is the cash that Obama caused to be hoarded and that he and other Democrats lamented wasn't being put to work to create jobs. It's now going out into the world via shareholders' accounts. What gets done with that money - spent or reinvested - remains to be seen.
Shall we listen intently for the cries of rich, hypocritical, Obama-loving trust fund babies lamenting the avoidance of taxation that they all so self-righteously proclaim that we need?
Oh, did I mention that it seems all the millionaires in the UK up and disappeared when tax rates went to 50%?? Yup.
posted by Donny Baseball at 1:25 PM
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