While you might have read about the possibility of the United States going over the fiscal cliff, the impending crisis may benefit some of the richest people in the country, according to a story on Quartz’s website.
The article posits the theory that the potential of the U.S. government possibly raising taxes on dividends is causing corporate America to release some of its almost $1.8 trillion in cash and liquid assets in the form of dividends to shareholders.
The Wall Street Journal is cited in the piece, bolstering the idea, and a quote from a Financial Times article is reprinted, stating that “a record 103 companies have announced they will pay special dividends before the end of the year.”
The Financial Times quote goes on to say the last time this happened was “during the fourth quarter of 2010 [,] the last time that the so-called Bush tax cuts were about to expire.”
One shareholder – Las Vegas Sands CEO Sheldon Adelson – is singled out as potentially being the recipient of $1.2 billion in dividends on his 52 percent ownership interest in the casino company.
Is the threat of a fiscal cliff really a fiscal lift for the rich? How is the DC Metro region, known for its wealth, preparing for potentially higher taxes?