Tuesday, November 20, 2012

Walmart moves up dividend to save on taxes

Posted By on Tue, Nov 20, 2012 at 10:59 AM

The New York Times notes that Walmart has moved up payment of its quarterly dividend in anticipation of a federal tax increase. The move of the dividend from 2013 to late 2012 could save $180 million for the Walton family.

The federal tax on dividends is currently capped at 15 percent. Without a compromise on the end of Bush-era tax increases, the rate could jump to 39.6 percent, plus a surcharge for the new health legislation. The change could mean the difference between a $95 million tax payment this year and $276 million on the family's hundreds of millions in dividend income.

Silver lining for Arkansas: Moving that payment to 2012 will guarantee Arkansas income tax for those claiming Arkansas residence at the current rate - 7 percent. Republicans are spoiling to cut Arkansas income taxes next year. Any state income tax bill will be deductible from federal income tax returns and reduce the effective state rate by whatever effective overall rate the Waltons pay on their federal returns. I suspect they'll scrape by.

Tags: , , ,

Favorite

Speaking of...

Comments

Showing 1-1 of 1

Add a comment

 
Subscribe to this thread:
Showing 1-1 of 1

Add a comment

More by Max Brantley

  • Arkansas Supreme Court denies rehearing in death penalty challenge, but delays mandate

    The Arkansas Supreme Court today refused to rehear the case denying Death Row inmates information about drugs used by the state in the lethal injection process.
    • Jul 21, 2016
  • Welspun layoffs: Another example of corporate welfare folly

    Layoffs at the Welspun pipe plant in Little Rock are a reminder of the folly of corporate welfare and the inability of Arkansas to separate itself from global economic forces. See the Fayetteville shale. And keep a watchful eye on that Sun Paper pulp mill proposed near Arkadelphia.
    • Jul 21, 2016
  • Hamburg bank manager gets 21 months for theft

    Melinda Gwin, 49, of Hamburg has been sentenced to 21 months in federal prison and ordered to repay $210,875 stolen from the First National Bank of Crossett. She was sentenced in El Dorado federal court, according to a Justice Department news release.
    • Jul 21, 2016
  • More »

Readers also liked…

Most Viewed

Most Recent Comments

Blogroll

 

© 2016 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation