Obama Allies Rushing To Hide From Tax Hikes

buffett-obama

You really have the marvel at the hypocrisy of some of President Obama’s biggest supporters rushing to avoid the tax increases that have become central to his agenda for a second term.

For instance, Costco (whose founder was very much an Obama backer) is rushing to pay out dividends this year so that they can be taxed at a lower rate before next year’s tax hikes:

When President Obama needed a business executive to come to his campaign defense, Jim Sinegal was there. The Costco co-founder, director and former CEO even made a prime-time speech at the Democratic Party convention in Charlotte. So what a surprise this week to see that Mr. Sinegal and the rest of the Costco board voted to give themselves a special dividend to avoid Mr. Obama’s looming tax increase. Is this what the President means by “tax fairness”?

Specifically, the giant retailer announced Wednesday that the company will pay a special dividend of $7 a share this month. That’s a $3 billion Christmas gift for shareholders that will let them be taxed at the current dividend rate of 15%, rather than next year’s rate of up to 43.4%—an increase to 39.6% as the Bush-era rates expire plus another 3.8% from the new ObamaCare surcharge.

Warren Buffett, who has long backed Obama’s play when it comes to tax hikes, did a $1.2 billion share buyback to help an investor avoid tax hikes:

(Reuters) – Warren Buffett’s $1.2 billion share buyback from a single unnamed investor likely helped that person’s estate save substantially on taxes, just one day after the Berkshire Hathaway CEO said the rich should actually be paying more, not less, when they die.

With the “fiscal cliff” looming and estate taxes set to rise dramatically in less than three weeks, the timing was seen as advantageous – and, according to Berkshire watchers, also out of place in the context of Buffett’s recent tax activism.

Now the folks at Google, who were a “top source” for Obama’s campaign funds, have stuffed $10 billion in to an off-shore tax haven:

Google Inc. (GOOG) avoided about $2 billion in worldwide income taxes in 2011 by shifting $9.8 billion in revenues into a 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.

It’s amazing how actions speak louder than words, isn’t it?

When our friends on the left talk about everyone paying their “fair share” in taxes, they don’t really mean them. They mean other people. Like, say, you.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • mikemc1970

    Sometimes real life can resemble a Peanuts cartoon. The socialists are like Charlie Brown, taxes on the rich are like Lucy, and the football represents the revenue goal. Everyone knows that the football is going to pulled away just at the last second and that Charlie Brown is going to end up on his back with egg on his face, but that never stops him from trying to kick it anyway.

  • WOOF

    Call it stimulus.
    Obama likes stimulus.

    • $8194357

      Call it what ever ya want woof…
      It is what it is…
      Americas 100 year financial deconstruction………..
      Sinking even faster as the Titanic,
      (unsinkable ship, huh)
      (or to big to fail)
      slips beneath the surface…..

  • Thresherman

    As long as we are on the topic of hypocrisy, how about the letter that Democratic Senators sent trying to delay the implementation of the tax on medical devices? He we have such statesmen as Al Franken and others asking for the dealy of a tax that THEY VOTED FOR because they BELIEVE IT WILL BE BAD FOR THE ECONOMY! I guess when Nancy Pelosi said that “we have to vote for it so we can see what is in it” applied to members of her own party inthe Senate. We don’t have to call Democrats stupid anymore as it seems they are willing to openly expose themselves as such. The sad part is that they do this because they know that their supporters are even more stupid and won’t see it for what it is. It has gotten to the point that the movie “Idiocracy” is no longer a low rent comedy but is now becoming a cautionary tale about the long term effects of imposed liberalism.

  • matthew_bosch

    Do as I say not as I do.
    How is the investment market going to survive the forthcoming increase in cap gains?

  • SigFan

    For all the bluster about tax hikes for the rich the fact is that at $250K a year these days you are not rich. Comfortable yes, but far from rich. In talking to my financial guy the other day he was relating how if your income was in the tax “sweet spot” being targeted by Obama you would end up paying more but if you go to the much higher income levels where compensation is deferred or given in stock instead of salary you would be largely unaffected by a tax rate hike. The reality is that the middle and upper middle class is where the money is – and despite Obama’s pandering that he’s for the middle class what he’s really for is taking from the middle class.

    • WOOF

      “fewer than 3% of tax returns (3.924 million returns out of 140+ million
      total returns) claimed more than $200,000 in adjusted gross income
      (AGI) in tax year 2009 ,,,,66% of returns had an AGI of less than $50,000. 88% of returns had an AGI of less than $100,000.”
      http://www.lazymanandmoney.com/how-many-people-make-more-than-250000-per-year/

      • Bat One

        If fewer than 4 million returns had AGI of less than $200K, then clearly raising tax rates on those folks will have far less positive effect on the budget deficit than it will negative effect on job growth, since a substantial amount of that AGI comes from S-corp and family farm enterprises, the country’s premier job creators. Fact is, even the CBO projection of less than $1 trillion in increased revenue from so-called Buffett Rule tax hikes over ten years is far too optimistic given the manner in which CBO projections are mandated by federal law. So what’s the REAL reason for hiking tax rates for nation’s more productive citizens, since clearly it has nothing to do with deficit reduction?

      • alanstorm

        Do you have a point, other than to demonstrate that you’re obtuse? Or are you saying it’s OK to steal from this particular group because they’re small in numbers?

  • kevindf

    It’s always been “Don’t tax you, don’t tax me, tax that fellow behind the tree!” with this bunch.

  • LESNC

    That is why obama wants to go over the “cliff”. Look at all those middle class extra taxes he would have to spend on new programs, not the deficit and blame it on the Republicans

  • $8194357

    Hate to break it to you..
    International leftist big money has been
    jumping ship since the two terms of team Billary.
    Carrying everything they could with them to “greener”
    (or communist redder) pastures…

  • cvmeister

    Would Obama’s BFFs at COSTCO have borrowed the $3.5Billion (why isn’t the SEC all over that?) to pay out the dividend if they hadn’t already been told that the President was going to drive the republicans over the cliff? Boehner is just being set up ( why isn’t the president meeting with both the House AND Senate leaders if he really wanted to avoid the tax increase that are coming?) to take the fall.

  • $8194357

    Elietist social justice leftist ideologs..
    Gotta love the communists with money, huh..

    Since he is dear friends with third world dictators, such as Hugo Chavez, it is not surprising that he would admire the dictatorial regimes that jail dissenters.
    Unfortunately, what Belafonte, and other Marxists residing in the US fail to understand, is that the US is not designed as a dictatorship. Ironically, someone who made music and films as a source of presumably high income, wishes to have the very culture that squashes creativity, art forms, freedom and the pursuit of happiness and ones own destiny.
    Much like Sharpton and Chavez, Belafonte has elevated himself over all other citizens, by believing that this form of government would establish that he is above the very treatment he prescribes for all in the name of Social justice and redistribution of wealth and forced compliance.

    Read more: http://freedomoutpost.com/2012/12/marxist-harry-belafonte-recommends-obama-imprison-conservatives/#ixzz2EzsQkhfo

  • londontubes

    “Bermuda”? Isn’t that where Pres. Obama and his cronies said Romney put his money, and how bad it was? Hypocrites again!!!!!

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