The end of stock buybacks?

Republican Senator Marco Rubio released a report that called for ending the tax advantages that share buybacks enjoy over dividends. The goal is to encourage companies to invest in the future rather than give them tax incentives to reward shareholders.

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well I have to applaud this since it is rare bipartisan thing 

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3 minutes ago, 李伟王芳 said:

Republican Senator Marco Rubio released a report that called for ending the tax advantages that share buybacks enjoy over dividends. The goal is to encourage companies to invest in the future rather than give them tax incentives to reward shareholders.

US companies announced more than $1 trillion of buybacks in 2018, the first full year since the tax law took effect. And yet at the same time fixed business investment increased just 8.2% through the first three quarters of 2018. 

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4 minutes ago, JohnAtronis said:

US companies announced more than $1 trillion of buybacks in 2018, the first full year since the tax law took effect. And yet at the same time fixed business investment increased just 8.2% through the first three quarters of 2018. 

I dont see stock buybacks as the problem, but stock options. If top executives have options that increase in value as the stock rises, they are more inclined to use company resources to buy back stock and increase the price.

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13 minutes ago, 李伟王芳 said:

Republican Senator Marco Rubio released a report that called for ending the tax advantages that share buybacks enjoy over dividends. The goal is to encourage companies to invest in the future rather than give them tax incentives to reward shareholders.

looks like Rubio is eyeing the office again

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When government starts dictating what a non government entity can and can not do then the constitution should be torn up!

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Just now, Sefko Trafikant said:

When government starts dictating what a non government entity can and can not do then the constitution should be torn up!

I believe the constitution states that the congress has the power to regulate commerce.

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4 hours ago, 李伟王芳 said:

I dont see stock buybacks as the problem, but stock options. If top executives have options that increase in value as the stock rises, they are more inclined to use company resources to buy back stock and increase the price.

Both are the problem, and I'm glad you bring up the stock options; they should not be so directly tied to the stock price.  The ways to gauge the C-suites' values should be much better thought out and based on the many things that we all can figure out for ourselves, no need for me to list them here.

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