culture, politics, commentary, criticism

Friday, January 17, 2003
The dividend that keeps on giving. In a freakish coincidence of timing with W's proposed "stimulus package," Microsoft announced that it will start paying dividends.

Tech companies traditionally do not pay dividends, so this is news. Also, the $30+ billion in cash and cash equivalents that Microsoft has under the mattress is starting to look vulgar, even by Wall Street standards.

From the subscription-requiring
Wall Street Journal:
Software giant Microsoft Corp., finally bowing to mounting pressure to return some of its huge cash hoard to investors, said it will begin paying a regular annual dividend to shareholders.

The surprise move, coming on the heels of President Bush's recent proposal to eliminate the federal tax on dividends, represents a big shift for the nation's most valuable high-tech company, which for 17 years has spurned the idea of a dividend in favor of plowing cash back into product research and development.

[...]

Top Microsoft executives, however, could see their income rise soon because of the newly declared dividend. Chairman Bill Gates, who held 621.7 million shares of Microsoft as of Sept. 9, or 11.6% of the company, could expect an annual dividend check of $99.48 million. For chief executive Steve Ballmer, who holds 235.5 million shares, dividends would amount to $37.68 million.
Those attractive piles of $99 million and $37 million (try to picture them, in small denominations, in your living room) are tax-free under the ultra-generous Bush plan.

Generous to a very select few, that is. Even a truck driver with a winning Powerball lottery ticket has to pay substantial taxes on similar amounts of money. Why? He didn't work for it! It's unearned!

Why do these two already-rich men — and others like them — deserve to pay not one dime of taxes on an unearned sum of $136 million? Is it just for being alive at the same time as a dim-witted (or evil, take your pick) president?
.



Greatest Hits · Alternatives to First Command Financial Planning · First Command, last resort, Part 3 · Part 2 · Part 1 · Stealing $50K from a widow: Wells Real Estate · Leo Wells, REITs and divine wealth · Sex-crazed Red State teenagers · What I hate: a manifesto · Spawn of Darleen Druyun · All-American high school sex party · Why is Ken Lay smiling? · Poppy's Enron birthday party · The Saudi money laundry and the president's uncle · The sentence of Enron's John Forney · The holiness of Neil Bush's marriage · The Silence of Cheney: a poem · South Park Christians · Capitalist against Bush: Warren Buffett · Fastow childen vs. Enron children · Give your prescription money to your old boss · Neil Bush, hard-working matchmaker · Republicans against fetuses and pregnant women · Emboldened Ken Lay · Faith-based jails · Please die for me so I can skip your funeral · A brief illustrated history of the Republican Party · Nancy Victory · Soldiers become accountants · Beware the Merrill Lynch mob · Darleen Druyun's $5.7 billion surprise · First responder funding · Hoovering the country · First Command fifty percent load · Ken Lay and the Atkins diet · Halliburton WMD · Leave no CEO behind · August in Crawford · Elaine Pagels · Profitable slave labor at Halliburton · Tom Hanks + Mujahideen · Sharon & Neilsie Bush · One weekend a month, or eternity · Is the US pumping Iraqi oil to Kuwait? · Cheney's war · Seth Glickenhaus: Capitalist against Bush · Martha's blow job · Mark Belnick: Tyco Catholic nut · Cheney's deferred Halliburton compensation · Jeb sucks sugar cane · Poindexter & LifeLog · American Family Association panic · Riley Bechtel and the crony economy · The Book of Sharon (Bush) · The Art of Enron · Plunder convention · Waiting in Kuwait: Jay Garner · What's an Army private worth? · Barbara Bodine, Queen of Baghdad · Sneaky bastards at Halliburton · Golf course and barbecue military strategy · Enron at large · Recent astroturf · Cracker Chic 2 · No business like war business · Big Brother · Martha Stewart vs. Thomas White · Roger Kimball, disappointed Republican poetry fan · Cheney, Lay, Afghanistan · Terry Lynn Barton, crimes of burning · Feasting at the Cheney trough · Who would Jesus indict? · Return of the Carlyle Group · Duct tape is for little people · GOP and bad medicine · Sears Tower vs Mt Rushmore · Scared Christians · Crooked playing field · John O'Neill: The man who knew · Back to the top






. . .