The Root of the Problem with our Debt and our Politics in Five Easy to Read Paragraphs

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.

via Beating the Dividend Cliff: CEOs, Founders Cash In.

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.

Pretty much the definition of “rent seeking”.

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.

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