Oops

Remember the tax cut that passed the Senate because Republican gimmicks made it appear to be “only” $350 billion, which the Democrats had already been tricked into approving? Well, oops, it was really $420 billion. But it’s too late to be stopped now because it has already passed out of the Senate.

And the reason for the oops was that the amount was calculated as if the dividend tax cut applied only to dividends paid out of “current-year earnings.” But, from the same story, “Due to a drafting error, the tax cut actually covered dividends based on accumulated earnings.” This is a BIG oops here. It means that companies like Microsoft can issue a huge dividend out of the $40 billion they are sitting on with NO TAXES paid by the recipients! By making this apply to money already saved up in corporations this is just a huge windfall with no policy incentives whatsoever, because whatever reasons for encouraging corporations to start to operate in a way that causes them to start paying dividends certainly doesn’t apply to however they operated in the past, when they saved up the accumulated earnings. Oops. An accident. Right.

A previous “accident” made the tax cut cover companies that do not pay any taxes – meaning the money is never taxed – as well as companies that do pay taxes. This makes the “taxed twice” argument out to be a lie.

Se everything about this dividend tax cut has been a lie or a trick! They just say a bunch of stuff, and then go ahead and do something entirely different.