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This is only true of dividends. But I don't think it wasn't true of stock buybacks. Also there is plenty of business income that is not double taxed because i
by JamesBarney 8y ago
This is only true of dividends. But I don't think it wasn't true of stock buybacks.
Also there is plenty of business income that is not double taxed because it isn't run through a C Corp.
Then in regards to incentives. We already have interest rates to adjust the knobs of investment versus consumption. Capital gains is just a way to make the tax system less progressive.
- blumenko 8y agoStock buybacks come from profits which are taxed, and those who sell the shares back to the company also have to pay capital gains tax. And S corp income is taxed at personal income rates, not capital gains rates (except for some ridiculous 20% rebates in some situations in the new tax law (but is still higher than capital gains)).
- JamesBarney 8y agoYou're right. I had a brain fart forgetting that buybacks are taxed as profit.