Re:Stock buybacks are dangerous for the economy
by jdminhbg on Tuesday March 17, 2020 @01:44PM
(#22607721)
The tax code penalizes dividends by taxing recipients at the time they're paid.
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Re:Stock buybacks are dangerous for the economy
by dlp211 on Tuesday March 17, 2020 @05:01PM
(#22610377)
The same "penalty" applies to the capital gains realized by the sellers when the buyback happens and future sales. The only substantial difference is the ability to choose when to realize those gains by the other shareholders. It's a bad argument and buy backs should be made illegal again.