Brown Forman became the latest company today to return money to shareholders before any increase in dividend taxes possible kick in.
The maker of Jack Daniels whiskey and other alcoholic beverages decided to give holders a $1 special dividend that would count in this tax year – not next year. That’s somewhat significant for shareholders because under tax cuts enacted under former President George Bush, dividend income was taxed at a 15% tax rate. Next year it jumps to a 40% rate unless Congress extends the tax cut. No word on that yet.