us firms rush special payouts to beat tax hike
Last Updated : GMT 00:27:23
Arab Today, arab today
Arab Today, arab today

US firms rush special payouts to beat tax hike

Arab Today, arab today

Arab Today, arab today US firms rush special payouts to beat tax hike

Washington - AFP

US companies are rushing to make huge payouts to shareholders before year-end to beat a tax increase on dividends expected to emerge from deficit talks under way in Washington. Big-box discounter Costco became the latest firm Wednesday to set a dividend before December 31, promising a special cash payout of $3 billion, or $7 a share, on December 18. On Tuesday Brown-Forman Corp., which makes Jack Daniels whiskey, declared a special cash dividend of $4 a share, to be paid on December 27; department store owner Dillard\'s set a $5 a share bonus dividend, and casino operator Las Vegas Sands said its board approved a special payment of $2.75 a share on December 18. Other companies, including Walmart, the world\'s largest retailer, have moved forward their regular quarterly dividends from early 2013 to December in order to beat the expected year-end deadline for a tax change. Verizon Wireless said earlier this month it would pay an $8.5 billion dividend to parents Verizon and Vodafone with a December 31 deadline -- just in time to beat the possible tax hike. The tax rates on dividends and capital gains are widely expected to increase as a result of negotiations between Democrats and Republicans aimed at cutting the deficit over the long term. Cut to 15 percent in 2003 from a top rate of 39.6 percent, the dividend tax has become a symbol of a tax system and economy that critics say favors the wealthy.It was a key issue in the presidential election, during which President Barack Obama skewered his wealthy opponent Mitt Romney for paying taxes at one of the lowest rates. This was because much of Romney\'s tens of millions of dollars in income came from dividends. Most expect the rate to be pushed back up to the same levels of income taxes -- as much as 35 percent, or more if the highest income tax rate is raised again. That has encouraged a number of companies -- especially those like Dillard\'s, Walmart and Las Vegas Sands which are closely controlled by families -- to return cash to shareholders at a likely lower tax rate. \"We believe this special dividend is the best utilization of the company\'s strong balance sheet at this time... The company chose to make this payment in calendar 2012 because of the uncertainty surrounding future dividend tax rates,\" said Brown-Forman Chief Executive Paul Varga. According to market research group Markit, special dividends are soaring this quarter, and it expects the normal average of 31 to surge to 120 or more. It is not the first time, according to Markit: payouts jumped in December 2010 when it appeared that the dividend tax would rise at the beginning of 2011. Markit pointed out that the payouts are more frequent when those deciding the payout control a bigger chunk of the company, as in Walmart. \"Markit believes that insider holdings are the key variable in projecting special dividends in this unique tax environment. \"Concentrated ownership at the executive and board level can more expeditiously push for one-time special dividends at the current favorable tax levels. Disparate groups of shareholders may not have the same influence.\" Jon Ogg of 24/7WallSt said some tech companies loaded up with cash could also make the move for an advanced payout, including Apple, Yahoo!, Juniper Networks and Oracle. \"Larry Ellison and friends have a cash arsenal of more than $31 billion,\" Ogg said of Oracle\'s chief executive and key shareholder. \"By sending back half of that cash, Oracle could have a 10 percent special cash dividend and still have more than $15 billion on its books.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us firms rush special payouts to beat tax hike us firms rush special payouts to beat tax hike

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

us firms rush special payouts to beat tax hike us firms rush special payouts to beat tax hike

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today The Big Apple bike boom

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Leaders of Russia, Iran, Turkey meet

GMT 10:12 2017 Wednesday ,22 November

Leaders of Russia, Iran, Turkey meet
Arab Today, arab today 'Advanced' cyber attack targets Saudi Arabia

GMT 10:18 2017 Wednesday ,22 November

'Advanced' cyber attack targets Saudi Arabia
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Honda recalls 800,000 minivans

GMT 11:43 2017 Wednesday ,22 November

Honda recalls 800,000 minivans
Arab Today, arab today VW says will invest over 34bn euros

GMT 07:19 2017 Tuesday ,21 November

VW says will invest over 34bn euros
Arab Today, arab today Singer Jahda Wahba has unlimited ambitions

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 09:23 2017 Saturday ,18 November

Fedra happy for “Between Two Worlds” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 13:41 2017 Tuesday ,21 November

French choke up over proposal

GMT 00:44 2017 Monday ,20 November

Japanese regulators raid Airbnb

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday