You may have noticed that a few of the nice, quiet, unassuming energy master limited partnerships — energy stocks with high dividend yields — blew up in the middle of last week. Here’s why.
It seems that certain people in government have decided that rather than cutting back on spending to balance the budget it might be a better idea to tax successful companies more. Hard to believe, I realize, that government officials could be so naive. But here’s what I found out.
According to Reuters, the Obama administration is considering a plan to force more businesses to pay corporate income tax as part of an overhaul package that could be unveiled as early as this month. Under the proposal, entities with more than $50 million in gross receipts would pay the corporate income tax, instead of the individual income tax they now pay. Partnerships like law firms, hedge funds and MLPs would likely be the most affected. Read