The wholesale giant Costco is sending out a special dividend to investors next month to beat President Obama’s expected tax hikes. The company will send out its regular 27.5 cent a share dividend on November 30. The special dividend will be $7 per share or a $3 billion payout, according to CNN.
The special dividend will be paid Dec. 18 to shareholders of record on Dec. 10. That will allow investors to pay the lower 15% tax rate currently in effect on dividends. With taxes set to rise on Jan. 1 as part of the fiscal cliff, the rate paid on the dividend could more than double for many high income taxpayers.
That’s nice for Costco investors, but get this – Costco executives are big supporters of Obama and the Democrats. I wonder if they agree with Warren Buffett’s assertion that raising taxes on the rich will raise the morale of the middle class.
Via Instapundit, who thinks the folks at Costco aren’t being very patriotic.