You are correct that they are usually taxed like capital gains (up to 23.8% currently), but stock buybacks allow deferment of these taxes, which is usually bett

You are correct that they are usually taxed like capital gains (up to 23.8% currently), but stock buybacks allow deferment of these taxes, which is usually better. If you hold the stock until you die and don't reach estate tax levels, then the stock gets passed on essentially tax free, making stock buyback even better.