Costco, Tax the Rich, Fiscal Cliff
Posted by Warren Peterson on December 1, 2012
Whether Congress passes Obama’s tax the rich or we go over the fiscal cliff, taxes are going up in 2013. So if you are rich, especially if dividends constitute a significant portion of your income, you’d want to move as much income as you can back into 2012 to avoid whatever tax increases are coming next year. What is surprising is who is helping the rich do just that. It is none other than co-founder and former CEO of Costco and big time supporter of President Obama’s reelection, James Sinegal. His company is borrowing $3.5 billion to pay anticipated 2013 dividends now in 2012. Why would he help those filthy rich, of which he is one, dodge paying “their fair share” for another year? Weren’t we supposed to close tax loopholes? Since he supported Obama, will Mr. Sinegal press for a retroactive tax on dividends? Don’t hold you breath. One wonders if Mr. Sinegal will support any spending cuts as part of a deficit/debt compromise? Don’t exhale.
Read the Wall Street Journal’s November 30, 2012 article, “Costco’s Dividend Tax Epiphany” for more on tax hypocrisy.