Businesses Anticipating Stormy Weather on the Tax Front

Curtis Dubay / December 06, 2010

Like a falling barometer indicates impending bad weather, the actions of businesses are an early warning sign when Congress is about to harm the economy. Congress and the President continue to drag their feet on extending the 2001 and 2003 tax relief. The common assumption is that some compromise will be reached where the tax cuts are extended for all taxpayers for at least a few years. Businesses are not so deceived. They are anticipating higher taxes and acting accordingly.

The latest sign came from Regal Cinemas, which decided this week to offer an extraordinary dividend payment to its shareholders before the end of 2010. The $1.40 per share dividend payment will reduce the Regal’s retained earnings by $210 million. (more…)