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View Full Version : Punish The Rich? Not So Much



Kathianne
12-11-2012, 06:40 AM
Who could have seen this coming? Not just Costco and the few others mentioned.

http://www.bloomberg.com/news/2012-12-10/rich-gain-as-companies-seek-to-beat-obama-tax-increases.html


Rich Gain as Companies Seek to Beat Obama Tax Increases
<cite class="byline"> By Rich Miller & Alex Kowalski - Dec 10, 2012 4:57 PM CT

</cite>The wealthy look set to enjoy a windfall in the closing weeks of the year as companies push money out the door to beat the higher tax rates advocated by President Barack Obama (http://topics.bloomberg.com/barack-obama/).<cite class="byline">
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More than 150 companies, from Costco Wholesale Corp. to Las Vegas Sands Corp. (LVS) (http://www.bloomberg.com/quote/LVS:US), have declared special dividends totaling about $20 billion this quarter to avoid anticipated tax increases in 2013, according to data compiled by Bloomberg. Others, including law and private-equity firms, probably will pay bonuses, partnership distributions and commissions early for tax reasons, according to Lou Crandall (http://topics.bloomberg.com/lou-crandall/), chief economist at Wrightson ICAP LLC in Jersey City, New Jersey.


“We’re going to have a big jump in household income in the fourth quarter” said Crandall, whose company is a subsidiary of ICAP Plc, the world’s largest broker of transactions between banks. “It’s going to be in excess of $50 billion.”

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‘Less Equal’“This is just another indication of how incredibly unequal the income distribution has become over the past 28 years,” said Josh Bivens, research and policy director at the Economic Policy Institute, a Washington group that says it focuses on the economic condition of low- and middle-class Americans. “Wages are less equal than they used to be and capital income is less equal than it used to be, and there’s been a shift from labor income to capital income.”


The money won’t have much impact on consumer spending or economic growth because the wealthy are more likely to save rather than spend it, said Michael Feroli (http://topics.bloomberg.com/michael-feroli/), chief U.S. economist for JPMorgan Chase & Co. in New York.


“If they really wanted to spend, they would have spent by now,” the former Federal Reserve economist said.


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Kathianne
12-11-2012, 07:08 AM
http://www.bloomberg.com/news/2012-12-10/google-revenues-sheltered-in-no-tax-bermuda-soar-to-10-billion.html


Google Revenues Sheltered in No-Tax Bermuda Soar to $10 Billion
<cite class="byline"> By Jesse Drucker - Dec 9, 2012 11:01 PM CT

</cite>Google Inc. (GOOG) (http://www.bloomberg.com/quote/GOOG:US) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a Bermuda (http://topics.bloomberg.com/bermuda/) shell company, almost double the total from three years before, filings show.


By legally funneling profits from overseas subsidiaries into Bermuda, which doesn’t have a corporate income tax, Google cut its overall tax rate almost in half. The amount moved to Bermuda is equivalent to about 80 percent of Google’s total pretax profit in 2011.

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http://www.myfoxny.com/story/20307940/french-star-depardieu-moves-to-lower-tax-belgium


French star Depardieu moves to lower-tax Belgium
PARIS (AP) — A Belgian mayor says famed French actor Gerard Depardieu has bought a home and set up legal residence in his small town, lured by the food, the people, the lifestyle — and lower tax rates than back home.


The Socialist government under French President Francois Hollande has infuriated many ultra-rich in France by presenting a 2013 budget that would tax top earners at 75 percent over the first €1 million of annual income. Belgium's top rate is 50 percent.

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Meanwhile, for the rest:

http://ca.news.yahoo.com/mcdonalds-november-restaurant-sales-beat-expectations-130805666--finance.html


McDonald's "Dollar Menu" sparks November sales rebound
(Reuters) - McDonald's Corp's <mcd.n> sales at established restaurants rose more than expected in November as a renewed emphasis on low-priced menu options, such as $1 Sausage McMuffins and coffee, helped the company bounce back from a rare decline in October, it said on Monday.</mcd.n>
Sales at restaurants open at least 13 months were up 2.4 percent in November, easily topping the tepid 0.17 percent increase expected by analysts polled by Consensus Metrix.


Still, analysts said it was too early to say that the world's biggest restaurant chain, known for its french fries and Big Macs, had regained its strong lead over rival fast-food chains.

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