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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 [View all]

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 [View all]
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