Who Should Be Accelerating Income Into 2012?
If the corporation does not have earnings and profits, the sting tax does not apply. You get rid of earnings and profits with a dividend. If you have been procrastinating on getting on the road to avoiding double taxation, this might be an opportune time. There are some really ugly stories about people who never got around to it.
Is Costco’s Jim Sinegal A Hypocrite ?
I have to say I appreciate the Wall Street Journal thinking about the little guys like me, the potential victims of this upcoming onerous tax. I hate to point out that I don’t think it is really that big a deal to the low six figure plodders who get the brief time in the sunlit lands over a quarter million in AGI. You really have to have quite a bit in invest-able assets outside retirement accounts for the new tax on investment income to sting an awful lot. Regardless of that, I think the condemnation of Mr. Sinegal is ridiculous.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.