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Does not compute. If congress passed a stock buyback tax 10 years ago, there would have been less buybacks over the 10 years.
by andrewljohnson 6y ago
Does not compute. If congress passed a stock buyback tax 10 years ago, there would have been less buybacks over the 10 years.
- mrep 6y agoNot just less, there would be none and it would have all been given out as dividends. Stock buybacks are just dividends reinvested in the company for you.
- eli_gottlieb 6y agoThen how about the company doesn't make that investment decision for me?
- deleted 6y ago[deleted]
- mrep 6y agoYou can sell a proportion of you holdings to maintain the same ownership percentage thus acting like a dividend if you want. With fractional shares, you should be able to even do it with a small amount of shares. Albeit, I don't know of any brokerage that automates it for you. You can also just buy ETFs as they will sell stocks themselves in order to maintain proper weightings.
- frockington1 6y agoThen sell proportionately to the buyback, you'll probably even make some money to get taxed on
- mikestew 6y agoDividends would have been taxed. “Stock buy-backs are just...” leaves a lot out, enough that one might wonder if it were intentional.
- mrep 6y agoThe company buying back their stock had to buy it from someone though and that person who sold it is going to pay a tax on any gains from that sale.
- mikestew 6y agoI bought way too high, so when I sell my AcmeCo stock back to AcmeCo, I’ll get a tax refund! If you want to tax profits, then tax profits. If you want to have cheesy loophole tax avoidance, stock buy-backs might be more your style.