I'll add some more to nickff's comments: LBOs reallocates capital; a liquid capital market is thought to be a good thing. Our tax system massively favors capi

I'll add some more to nickff's comments: LBOs reallocates capital; a liquid capital market is thought to be a good thing. Our tax system massively favors capital obtained by debt. For all forms of capital you pay something. It gets complicated in our favorite situation where future growth prospects result in a rising stock price, but stock buybacks are taxed once (they come from profit), dividends are notoriously taxed twice (they're shareholder income), but the interest payed on debt is deducted as a cost of doing business. Before adding another regulatory epicycle to a system that's choking to death on them, perhaps consider reforming this perverse incentive?