Kathianne
12-11-2012, 06:40 AM
Who could have seen this coming? Not just Costco and the few others mentioned.
http://www.bloomberg.com/news/2012-12-10/rich-gain-as-companies-seek-to-beat-obama-tax-increases.html
Rich Gain as Companies Seek to Beat Obama Tax Increases
<cite class="byline"> By Rich Miller & Alex Kowalski - Dec 10, 2012 4:57 PM CT
</cite>The wealthy look set to enjoy a windfall in the closing weeks of the year as companies push money out the door to beat the higher tax rates advocated by President Barack Obama (http://topics.bloomberg.com/barack-obama/).<cite class="byline">
</cite>
More than 150 companies, from Costco Wholesale Corp. to Las Vegas Sands Corp. (LVS) (http://www.bloomberg.com/quote/LVS:US), have declared special dividends totaling about $20 billion this quarter to avoid anticipated tax increases in 2013, according to data compiled by Bloomberg. Others, including law and private-equity firms, probably will pay bonuses, partnership distributions and commissions early for tax reasons, according to Lou Crandall (http://topics.bloomberg.com/lou-crandall/), chief economist at Wrightson ICAP LLC in Jersey City, New Jersey.
“We’re going to have a big jump in household income in the fourth quarter” said Crandall, whose company is a subsidiary of ICAP Plc, the world’s largest broker of transactions between banks. “It’s going to be in excess of $50 billion.”
...
‘Less Equal’“This is just another indication of how incredibly unequal the income distribution has become over the past 28 years,” said Josh Bivens, research and policy director at the Economic Policy Institute, a Washington group that says it focuses on the economic condition of low- and middle-class Americans. “Wages are less equal than they used to be and capital income is less equal than it used to be, and there’s been a shift from labor income to capital income.”
The money won’t have much impact on consumer spending or economic growth because the wealthy are more likely to save rather than spend it, said Michael Feroli (http://topics.bloomberg.com/michael-feroli/), chief U.S. economist for JPMorgan Chase & Co. in New York.
“If they really wanted to spend, they would have spent by now,” the former Federal Reserve economist said.
...
http://www.bloomberg.com/news/2012-12-10/rich-gain-as-companies-seek-to-beat-obama-tax-increases.html
Rich Gain as Companies Seek to Beat Obama Tax Increases
<cite class="byline"> By Rich Miller & Alex Kowalski - Dec 10, 2012 4:57 PM CT
</cite>The wealthy look set to enjoy a windfall in the closing weeks of the year as companies push money out the door to beat the higher tax rates advocated by President Barack Obama (http://topics.bloomberg.com/barack-obama/).<cite class="byline">
</cite>
More than 150 companies, from Costco Wholesale Corp. to Las Vegas Sands Corp. (LVS) (http://www.bloomberg.com/quote/LVS:US), have declared special dividends totaling about $20 billion this quarter to avoid anticipated tax increases in 2013, according to data compiled by Bloomberg. Others, including law and private-equity firms, probably will pay bonuses, partnership distributions and commissions early for tax reasons, according to Lou Crandall (http://topics.bloomberg.com/lou-crandall/), chief economist at Wrightson ICAP LLC in Jersey City, New Jersey.
“We’re going to have a big jump in household income in the fourth quarter” said Crandall, whose company is a subsidiary of ICAP Plc, the world’s largest broker of transactions between banks. “It’s going to be in excess of $50 billion.”
...
‘Less Equal’“This is just another indication of how incredibly unequal the income distribution has become over the past 28 years,” said Josh Bivens, research and policy director at the Economic Policy Institute, a Washington group that says it focuses on the economic condition of low- and middle-class Americans. “Wages are less equal than they used to be and capital income is less equal than it used to be, and there’s been a shift from labor income to capital income.”
The money won’t have much impact on consumer spending or economic growth because the wealthy are more likely to save rather than spend it, said Michael Feroli (http://topics.bloomberg.com/michael-feroli/), chief U.S. economist for JPMorgan Chase & Co. in New York.
“If they really wanted to spend, they would have spent by now,” the former Federal Reserve economist said.
...