Stock buyback tax

[Kgchapman (Kevin chapman)]

A stock buyback doesn’t expand the business or pay employees more but enriches shareholders and insiders. We should institute a policy that a company doing a stock buyback has to pay an equivalent amount in taxes to the federal government. While Senator Warren started down the right path to regulate banks and credit companies she didn’t take it far enough. Stock buybacks don’t do anything except prop up the stock in the secondary market and lower the number of shares outstanding. Companies do this to avoid dividends being taxed as ordinary income and insiders who sell pay a lower long term capital gain tax.