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Thu Dec 27, 2012, 12:00 AM

CEOs Ring in New Year With Early Pay-Day Windfall to Beat Expiration of Bush Tax Cuts

Source: Truthout

In anticipation of higher taxes on dividends, a number of corporations are paying out dividends early - even when they have to borrow to do so.

As the corporate-named "fiscal cliff" nears, hundreds of companies are busy paying out 2013 dividends in 2012, so CEOs and other major shareholders can avoid paying higher taxes when the Bush tax cuts expire. Under the Obama administration, taxes on dividends may increase from the current rate of 15 percent to as high as 43 percent.

Some companies, like Walmart, are moving up the payment of the quarterly dividends by a week, while other companies, like The Washington Post Company, are paying out the entire yearly dividend for 2013 in 2012 in their mad haste to avoid taxation. Some companies are even borrowing money to pay out dividends on earnings that have not even been earned yet. At least the banks are loaning to someone, even if it means the loan is used to dodge taxes.


Walmart President and CEO Mike Duke speaks at the
company's March, 2011 Sustainability Milestone
Meeting. Duke has authorized early dividends to
stockholders in anticipation of higher taxes next
year while defending low wages for employees.


What all these companies have in common is that the early dividend payments benefit a small number of insiders - from the Walton family at Walmart to Donald Graham and Warren Buffet at The Washington Post, to name a few.

Take Larry Ellison. CNBC recently reported that:

Larry Ellison is the latest corporate chief to benefit from the spate of special dividends or accelerated dividends announced in the fourth quarter. Oracle announced Monday it would pay more than $800 million in next year's dividends this month.

Ellison's share of the payout is $198.9 million, based on his ownership of 23 percent of the company's stock.

. . .


Read more: http://truth-out.org/opinion/item/13545-ceos-ring-in-new-year-with-early-pay-day-windfall-to-beat-expiration-of-bush-tax-cuts



Basturds!
Always finding ways to cheat the system.

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Reply CEOs Ring in New Year With Early Pay-Day Windfall to Beat Expiration of Bush Tax Cuts (Original post)
aggiesal Dec 2012 OP
PoliticAverse Dec 2012 #1
Angry Dragon Dec 2012 #2
commenter8 Dec 2012 #3
Bozita Dec 2012 #4
Brother Buzz Dec 2012 #5
bloomington-lib Dec 2012 #6
RandiFan1290 Dec 2012 #7
graham4anything Dec 2012 #8
closeupready Dec 2012 #9
graham4anything Dec 2012 #10
PaulaFarrell Dec 2012 #11
aggiesal Dec 2012 #12
WilliamPitt Dec 2012 #13
HughBeaumont Dec 2012 #17
high density Dec 2012 #15
Turbineguy Dec 2012 #14
aquart Dec 2012 #16
primavera Dec 2012 #18

Response to aggiesal (Original post)

Thu Dec 27, 2012, 12:06 AM

1. It's also to avoid the ACA's 3.8% surcharge on unearned income witch starts Jan 1. n/t

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 12:06 AM

2. It would make me feel better to see a lot of these people in prison

I am just trying to find ways to fill up the republican private prisons

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 01:47 AM

3. And your tax dollars are paying for it :-(

See my signature (below) for the link to the White House petition to end corporate welfare!

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 02:06 AM

4. The tax code, simply the biggest welfare king/queen program ever. ... And, it's untouchable!

DISFUCKINGGUSTING!

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 02:30 AM

5. To hell with morals and ethics, it's legal

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 07:03 AM

6. The Washington Post helps people cheat taxes

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 07:12 AM

7. The Bush tax cuts expired

These are the Obama/Pelosi/Reid tax cuts

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 07:43 AM

8. can I interupt this witchhunt for a moment...

 

anyone who wouldn't take advantage of something legal would be derelict in their duties, wouldn't they?

Who here wouldn't want to take advantage of a sale in the supermarket?Or do you all wait for the item to be higher priced to purchase?
Do you buy a car and say, no discount, please give me top rate?

sometimes I think this anti-money is totally misguided.
same with the stereotyping of all ceos and all workers

You do know the vast majority of those that work on wall street(say 99%) are regular 9 to 5 workers who's benefits are considered part of their pay.

One should be careful with the McCarthyism of the 1%/99%.

now please go back to the burn it down witchhunt.

(and no I am not not blaming the bad ones, just the witchunt and hatred

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Response to graham4anything (Reply #8)

Thu Dec 27, 2012, 08:31 AM

9. Just like a Third Way Democrat to disregard ethics.

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Response to closeupready (Reply #9)

Thu Dec 27, 2012, 08:38 AM

10. another boring new stereotype name to divide. I am just a regular liberal.

 

so are the vast majority of liberals or democratic voters

which is why those that want to burn everything down, but have no idea what they will do the day after are totally misguided.

If Bernie Sanders or Dennis Kucinich actually thought they could win something, do you think they would be so outspoken?
Their outspokeness comes from knowing they don't have to worry about going any further in their chosen careers...that is what makes them speak louder.

(dirty little secrets and both of course vote with the President when their vote is needed to be the deciding vote...)

are people that naive to think otherwise?

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Response to graham4anything (Reply #8)

Thu Dec 27, 2012, 10:11 AM

11. why would you be 'derelict in your duty' for not taking advantage of an unethical loophole?

There are plenty of things that are 'legal' that people with any sense of right and wrong do not partake of. But what is twisted is somehow equating one's duty with accumulating as much personal wealth as possible. Methinks you need to reread 'A Christmas Carol'.

You have also drawn false equivalencies. It's not a case of an individual not taking advantage of the best price, it's a case of companies paying dividensds on earnings which they haven't yet and may never earn, even going so far as to saddle a company with debt to achieve it. What they are doing should be illiegal, because it is not in any company's best interest to commit to paying a dividend when it does not know what its earnings will be. One could even say it is fiscally irresponisble. It is done entirely to benefit the CEOs in question, who cares about the company.

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Response to graham4anything (Reply #8)

Thu Dec 27, 2012, 10:18 AM

12. Yup you're right.

Let me borrow money from the gov't, to buy that discounted car,
so I can avoid paying more to the gov't.

The fact is corporations are by far the biggest welfare queens around,
then the Walmarts of the world defend their non living wage salaries.

I thought Corporations are people, yet we the people are not allowed
the same tax breaks!

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Response to graham4anything (Reply #8)

Thu Dec 27, 2012, 10:29 AM

13. You really are "4anything," aren't you.

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Response to WilliamPitt (Reply #13)

Fri Dec 28, 2012, 08:29 AM

17. As in "If you don't stand for something, you'll fall 4anything" . . .

. . . .

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Response to graham4anything (Reply #8)

Thu Dec 27, 2012, 06:22 PM

15. Why stop at one year of dividends? Why not pay a decade's worth? A century's worth?

This is a purely political move by the selfish uber rich.

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Response to aggiesal (Original post)

Thu Dec 27, 2012, 05:40 PM

14. Good thinking!

And if the teabaggers manage to succeed at putting the economy into a tailspin, they'll already be indemnified!

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Response to aggiesal (Original post)

Fri Dec 28, 2012, 04:43 AM

16. No end to their hell-bound, unpatriotic greed.

Satan has such treats for his disciples.

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Response to aggiesal (Original post)

Fri Dec 28, 2012, 09:36 AM

18. I remember reading a couple of years ago...

... about an incident in Germany where demonstrators took to the streets to express their outrage because some rich people had been discovered squirreling away assets in Swiss accounts in order to avoid paying taxes on them. Just a couple of weeks ago, I got yelled at here on DU for equating tax avoidance with tax evasion. It seems we have a very different culture when it comes to the legitimacy of finding ingenious ways of getting out of paying taxes. Perhaps it's no great wonder that we are so much more prone to the practice here.

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