The tax rate on dividends will triple on January 1. It pays to pay out dividends this year.
Costco’s Board of Directors decided to pay over $3 million in dividends this year. To pay for this, the company will borrow the money. At today’s low interest rates, that is a savvy move.
The Wall Street Journal cried “Hypocrites!” Why? Because some of the Board’s members are far-Left promoters of Obama.
I say that we need more hypocrisy like this. It’s better for Costco’s shareholders to get dividends at 15% than 43.4%. When Leftists act on behalf of the shareholders, it demonstrates the power of capitalism’s cash nexus.
When Keynesianism gets short-changed by capitalist hypocrisy, I’m all for it.
Are limousine liberals hypocrites? Of course. Do they place their self-interest above their ideology at the expense of their ideology? Usually. Is this good? Yes.
The USSR went belly-up when the Communist Party members at the top decided On December 31, 1991, to shut the whole operation down, declare a dividend, strip the Party of its assets, and transfer the money to senior members’ Swiss bank accounts. This was a great day for the world. It ended the Marxist revolution in Russia.
Marxism was no match for personal self-interest. The love of money is the root of all evil, the Apostle Paul wrote, but the love of power is a far greater evil. When the love of money comes into conflict with the love of money, put your money on money.