4 ms·
> Buybacks are just tax efficient dividends, and all of the hate against them is from people who don't realize this and haven't thought through the math Or fro
by patall 7y ago
> Buybacks are just tax efficient dividends, and all of the hate against them is from people who don't realize this and haven't thought through the math
Or from people who do exactly realize this and have though through the math. I mean, its not like there is no reason why dividends tend to be taxed ...
- sokoloff 7y agoSo are LTGCs from the shareholders who sold. Someone is paying the capital gains tax; it’s just not the people who stayed invested.
- disiplus 7y agowell, that's not how it should work or is intended. if my monthly paycheck is 13k eur before taxes and i live of 5k easily, i cannot say, take only 5k and pay taxes on that and for the other 8k give me stocks untaxed, and i will probably pay some tax when i sell the stocks (and different rules applay).
- sokoloff 7y agoThis is exactly how pre-tax retirement account contributions work in the US (albeit with limits in the $15K-$56K/yr range, rather than ~$100K/yr).