The biggest dividend payday this quarter is for Sheldon Adelson, CEO of Las Vegas Sands. Hell receive about $1.2 billion from the companys dividend.
His tax savings on the distribution could be as much as $340 million – more than twice the amount that he reportedly spent to fund candidates in the 2012 election.
More than 110 companies have announced special dividends totaling more than $22 billion this quarter – more than three times last years fourth-quarter total,according to Markit Equities Research.
The payouts are aimed at beating a potential increase in tax rates for dividends.Dividend payments are currently taxed at 15 percent, but the rate could go to 43.4 percent for some top earners if the Bush-era tax cuts expire.
The total taxes paid on that $22 billion of dividends will be around $3.3 billion – $9.5 billion less than next years potential taxes.
And that’s about it. The incredibly low tax rates on wealth mean that folks like Adelson can continue to pump 50% of those free profits back into the political system to protect those free profits.
This is also why the Republicans are fighting so hard for the top 2%….without those free profits flowing to the 2%, half of those free profits won’t flow back to the Republican party.