RNC Research

SHOT: “Costco’s Dividend Of About $3 Billion Was The Largest Announced In The Fourth Quarter As Of Nov. 28…” “Costco’s dividend of about $3 billion was the largest announced in the fourth quarter as of Nov. 28, exceeding a $2.3 billion payment from Las Vegas Sands, according to a report by Citigroup Inc. strategist Erin Lyons.” (Rich Miller and Alex Kowalski, “Rich Gain As Companies Seek To Beat Obama Tax Increases,” Bloomberg, 12/10/12)

• In Anticipation Of Obama’s Scheduled Tax Increases In January, Costco’s Shareholders Approved Of A Special Dividend Deal Before The End Of The Year, “Sending Its Stock Up About 6%.” “Costco, the giant wholesale-club operator, announced Wednesday that it will pay a special dividend of $7 a share before the end of the year. That’s about $3 billion the company will return to shareholders that the feds will only tax at 15% rather than the 39.6% rate scheduled to kick in when the Bush-era tax rates expire next year. For households earning more than $250,000 in 2013, you can add another 3.8 percentage points in tax thanks to the ObamaCare surcharge. Costco’s shareholders approved, sending its stock up about 6%.” (Editorial, “The Great 2012 Cashout,” The Wall Street Journal, 11/28/12)

CHASER: Co-Founder And Former CEO Of Costco Jim Sinegal Spoke In Support Of Obama At The 2012 DNC, Saying His Company Recognizes That Job Creation “Requires Companies That Plant And Grow, Not Executives Who Reap And Run.” JIM SINEGAL: “But at our company we recognize that job creation requires time and investment and commitment to the long term. It requires companies that plant and grow, not executives who reap and run. That’s how we do our part to build an economy that lasts.” (Jim Sinegal, Remarks At The Democrat National Convention, Charlotte, N.C., 9/5/12)

•  Sinegal Praised Obama As “A President Who Has Covered The Backs Of Businesses,” Adding That “In Order For Companies Like Costco To Invest, Grow, Hire, And Flourish, The Conditions Have To Be Ripe. That Requires Something From All Of Us.” JIM SINEGAL: “Business needs a president who has covered the backs of businesses. A president who understands what the private sector needs to succeed. A president who takes the long view and makes the tough decisions. And that’s why I’m here tonight supporting President Obama. A president making an economy built to last. See – in order for companies like Costco to invest, grow, hire, and flourish, the conditions have to be ripe. That requires something from all of us.” (Jim Sinegal, Remarks At The Democrat National Convention, Charlotte, N.C., 9/5/12)

• Sinegal Closed By Saying “Costco’s Story Is The American Story. Because It’s A Story That President Obama Is Helping Millions Of Dreamers And Doers To Write Anew For Themselves.” JIM SINEGAL: “I’m here tonight because Costco’s story is the American story. Because it’s a story that President Obama is helping millions of dreamers and doers to write anew for themselves. And I’m here tonight because I believe he deserves four more years to help us write the next chapter.” (Jim Sinegal, Remarks At The Democrat National Convention, Charlotte, N.C., 9/5/12)

The Wall Street Journal: “To sum up: Here we have people at the very top of the top 1% who preach about tax fairness voting to write themselves a huge dividend check to avoid the Obama tax increase they claim it is a public service to impose on middle-class Americans who work for 30 years and finally make $250,000 for a brief window in time. If they had any shame, they’d send their entire windfall to the Treasury.” (Editorial, “Costco’s Dividend Tax Epiphany,” The Wall Street Journal, 11/30/12)