Companies avert paying taxes AGAIN before their taxes go up

4The wealthy are scrambling to take advantage of the current tax code by exploiting the system in mass numbers and driving profits into their pockets before the tax hikes on the rich Obama wants go into effect.

Countless companies including Costco and the Las Vegas Sands have declared what they call “special dividends’ to liquidate tax free capital. This amounts to over $20 billion dollars in this last quarter alone. Other firms are shelling out bonuses, commissions, and dividends early before the wealth bombshell is to be dropped on the wealthiest few.

“We’re going to have a big jump in household income in the fourth quarter” said Crandall. “It’s going to be in excess of $50 billion.”

A majority of this scrambling is occurring in the uppermost crust of the elite. The 2% of the wealthiest Americans will be the benefits of this early cashout. President Barack Obama wants to target these wealthiest of individuals to help solve the fiscal crisis that lies before us by raising their rates.

Of interest in 2009 52% of the 124 billion dividends reported by federal government went to this 2% according to the IRS. A definite symbol of how backwards our world has become with income inequality.

This statistic alone proves just how unequal income distribution really is as the rich get richer and the poor get poorer. The wealth has shifted from labor income to capital income, an income with yields the benefit of lower taxes

How will this increase in taxes effect us in the long run? The rich typically save rather than spend so it is a good indication that a tax increase won’t hurt the economy by too much. It is about time that the wealthy began paying their fair share of this American Dream rather than being the gold tipped parasites that they are.