4 ms·
Not a huge fan of stock buybacks in the first place personally, especially by companies that get bailouts and use that money for stock buybacks. I'd rather com
by cableshaft 4y ago
Not a huge fan of stock buybacks in the first place personally, especially by companies that get bailouts and use that money for stock buybacks.
I'd rather companies just gave higher dividends instead (which would then be taxed). Also buybacks drive the price up to benefit people who sell to take advantage of it, whereas dividends benefit those who prefer to hold, which is what I prefer doing.
But I think this is a good alternative to just banning the practice.
- sereguze 4y agoI would have no issue if companies that receive bailouts are bared from buybacks, paying dividends and giving management bonuses until they pay back the money. But under normal circumstances buybacks are already taxed through capital gains taxes. That is more tax efficient but the solution to that is indexing the cost basis to inflation and scrapping any 50% discount not layering on more taxes.