Stock buybacks are the re-acquisition by a company of its own shares. It represents an alternate and more flexible way (relative to dividends) of returning money to shareholders. When used in coordination with increased corporate leverage, buybacks can increase share price. In most countries, a corporation can repurchase its own stock by distributing cash to existing shareholders in exchange for a fraction of the company's outstanding equity; that is, cash is exchanged for a reduction in the number of shares outstanding. The company either retires the repurchas…
Read more@ISIDEWITH2yrs2Y
No
@B2G8J4B6mos6MO
In 2022, S&P 500 companies spent $922.7 billion on stock buybacks, compared to $565 billion on dividends. This demonstrates their role as a major way corporations return value to shareholders. Around 58% of U.S. adults own stocks, either directly or through retirement accounts like 401(k)s. Stock buybacks boost the value of these investments, indirectly benefiting millions of Americans.
@9FVCWNT2yrs2Y
Under regular market conditions, the portion of profits that a company uses to buy back shares has a positive effect on the share price. For instance, a listed company has 1,000 shares of which a shareholder owns 100 a 10% stake.
@9FW9Y8VProgressive2yrs2Y
It allows for a loophole for the people of the highest brackets to not pay taxes, they are scamming the nation and something must be done.
@ISIDEWITH2yrs2Y
Yes, but I would prefer if they were banned
@B2G8J4B6mos6MO
Stock buybacks are an essential tool for capital allocation in a free market economy, and banning them could harm companies, shareholders, and the
whole economy.
@ISIDEWITH2yrs2Y
No, the biggest beneficiary of stock buybacks are pension funds and mutual funds
@9LYBLHD1yr1Y
If corporations are allowed stock buybacks they should be taxed at the degree of their buyback. Furthermore, the companies are making their companies more valuable than what they are.
@99FLB4V2yrs2Y
I don’t know what this means
@99MT3SV2yrs2Y
I don't understand this topic enough to have much of a stance on the issue.
@9P7MH8N1yr1Y
Stock trading is evil and should be abolished. Businesses should be owned entirely by their workers.
Yes, and then abolish private property and ban wealth accumulation
@9D6TXPS2yrs2Y
@99FSR4Z2yrs2Y
Buybacks I barely know her
@B3GGFNK4mos4MO
If the stock issuance is defined to be the cost basis of the stock, a buyback is probably a capital loss and should not be taxed.
Yes, and allow for everyday people to buy and own as many stocks as we can afford. More people owning capital is better than it being in the hands of just a few or corporations.
@9TQ8JH610mos10MO
There should be at least some incentive for corporations to make additional investments rather than buy back stock.
@84ZWD6LLibertarian 2yrs2Y
Yes, but in the form of a reformed corporate tax code where there is no income tax and only a tax on distributions, including stock buybacks
I don't have a personal opinion on this subject.
@9DL84YN2yrs2Y
I don't understand the question fully.
@9CDNYWP2yrs2Y
@9DTK8HR2yrs2Y
Too many big words that i don't understand
@9D9QR692yrs2Y
I am uneducated on this issue.
@9XMGBFB8mos8MO
You need to take into account the amount of capital. No taxes for small investors, and a progressive tax rate for large investors.
@9TFPG5N10mos10MO
Yes and No, I believe that we shouldn't be taxing stock buybacks, UNLESS, there is something severely wrong with that specific buyback. Now while I also believe that most brokers tend to be crooks, they're just doing they're job, doing what they're good at, and surviving off of it. It's just business
@9QS6HSL12mos12MO
Yes, and all trades, shares, and dividends should be heavily taxed to fund a single Payor health system.
@9KC7KKX1yr1Y
No, conmpanies need their shares back for their benefit. Government should not tax from shares, but firms and households' own money to make sure each of them contribute the government's protection in return.
@9F8D4M82yrs2Y
I am unknowledgeable on this topic
@9F75VT42yrs2Y
yes but it should only be allowed to a certain extent
@9F6FCKH2yrs2Y
yes but only if they are doing that instead of reinvesting
@7S5MSX8 2yrs2Y
not informed enough for an opinion
@9DYZ9T32yrs2Y
Buybacks should be taxed if they hold a specific level of monetary value.
Not very well educated on this to give an opinion.
@9DT5Y7V2yrs2Y
I do not have enough knowledge on this issue.
@9DKXV4X2yrs2Y
Yes, and raise taxes on all stocks purchased
@9DGS3KS2yrs2Y
I don't even know what that is.
@9DCZMS32yrs2Y
I don't understand this topic enough to pick an answer.
@9DCJCKW 2yrs2Y
Not enough knowledge to have an opinion.
@9DBLV5J2yrs2Y
No, the government should not tax anything.
@9DBCJWSLibertarian2yrs2Y
I'd need to learn more about the topic before making a decision.
@9D86K6S2yrs2Y
I'm unsure of the question.
@9LJJY8L1yr1Y
Yes. Stock buybacks can inflate a company’s stock price even if its financial performance is low. This can persuade naive investors into buying shares for a company that is conflating its current financial reputation in a positive light with regard to the buybacks
Government should determine the best way to appropriately tax all individuals and if this is even the best way to add revenue to the country's balance sheet. It should be taken into consideration with all other methods of taxation.
@charlie3sticks 1yr1Y
No - they should end the tyranny of the stock exchange all together so companies can run their business as they intended. They should provide open funding with proportional shares being distributed through a national pension program that is paid out via dividend.
@9FPHT6M2yrs2Y
No, except if the stocks are being bought back from the government following a bail-out
@9DWCH9Z2yrs2Y
@9DW5TS72yrs2Y
Yes, but tax them at a low rate
@mwlkybun2yrs2Y
I feel like if the company wants to buy back their stocks then it’s up to try to get them back at whatever monetary cost.
@8ZC9LDJRepublican 2yrs2Y
Yes, all stock purchases should be taxed.
@6VWJ8PP 2yrs2Y
No, only in the case of a distributed profits tax.
@9BXLFGR2yrs2Y
I don't not feel informed enough on this topic
@9HQN3KL 2yrs2Y
its not a simple yes or no the question of whether the government should tax stock buybacks involves weighing different factors and considering various viewpoints.
@9D5CHFN2yrs2Y
The government needs to stop taxing on ever! They are out of control!
@Baileyhargrave2yrs2Y
No, because the money for stock buybacks has already been taxed.
I don't have much of an opinion on this topic.
@9CH39KH2yrs2Y
I do not have enough information to make an informed decision.
@9BVSP6D2yrs2Y
I don't have a say in this one
@9BDTBPD2yrs2Y
I do not have enough understanding on this subject.
@9BDPXFP2yrs2Y
Not enough knowledge on the topic.
@7YY64YV2yrs2Y
Regardless, the government should pass a minimal tax all financial transactions.
@99TBWQF2yrs2Y
I dont really know much about this.
Only if it helps the government back someway.
@99MQRK72yrs2Y
@99MMB9F2yrs2Y
I feel I don’t know much about the situation to pick a side
@99KL7KW2yrs2Y
@99GRKC8Progressive2yrs2Y
No, but capital gains taxed at the same or greater rates as income taxes.
@99GK7TT2yrs2Y
i literally do not know what this means
@99GGRX82yrs2Y
I have no opinion on the matter
@99FQDFK2yrs2Y
I do not want to be apart of politics
@99FP5ST2yrs2Y
Not too sure one way or the other
@99FNWLZ2yrs2Y
i don’t know much about the topic
@99FLFVY2yrs2Y
@99FKCXP2yrs2Y
@9CL7BWH2yrs2Y
Yes, all income should be taxed.
No, but they should investigate the practice
@99G3SFP2yrs2Y
They should severely limit them.
@9CNGRNW2yrs2Y
@9BPNRP9Republican2yrs2Y
i do not have the proper knowledge to accuretly make am informed choice.
@9BGGZ3PProgressive2yrs2Y
I don't have enough knowledge on this.
@9B8SVLK2yrs2Y
I do not have enough knowledge in the situation to comment
@9B428S52yrs2Y
Only on companies that earn a certain amount a year.
No, but abolish the stock market and nationalize all corporations, transition them to well-regulated, unionized worker cooperatives, and ban the private sector
@99THK3L2yrs2Y
@Oatesi2yrs2Y
I do not consider myself to understand the topic enough to be confident in holding an opinion.
@99G7TRG2yrs2Y
I don’t know much about this
@99G7RPQ2yrs2Y
Yes, but stock buybacks should be illegal instead.
@99FX74F2yrs2Y
ill have to research more on this?
Loading the political themes of users that engaged with this discussion
Loading data...
Join in on more popular conversations.