The Inflation Reduction Act includes a 1% Stock Buybacks Tax!

Corporate executives spent $881 billion last year alone using this trick to inflate stock prices and CEO pay, instead of investing in workers, wages, and innovation. The result increases the racial wealth gap while doing nothing to add real value to the company. It’s a trick Wall Street loves for juicing the stock market.

A Stock Buybacks Tax will disincentivize stock buybacks for even happening, and when corporations still do it, this tax will make sure working families get some benefits from it through increased funding for fighting climate change and expanding healthcare nationwide.

Write your Senators! Tell them to pass the Inflation Reduction Act with the Stock Buyback Tax.

https://ourfinancialsecurity.org/?link_id=4&can_id=96ca627017cea4c6d1a6cc2480b3c1bd&source=email-re-stock-buybacks-tax-is-a-big-win-now-make-sure-it-happens&email_referrer=email_1627099&email_subject=re-stock-buybacks-tax-is-a-big-win-now-make-sure-it-happens

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markansas

Overall, the bill is a very scaled-down solution to what many Democrats, including President Biden, had asked for originally.
https://www.npr.org/2022/08/07/1116190180/democrats-are-set-to-pass-a-major-climate-health-and-tax-bill-heres-whats-in-it
"This bill is far from perfect. It's a compromise. But it's often how progress is made," Biden said at the White House last month. "My message to Congress is this: This is the strongest bill you can pass."

southbeachguy · 46-50, M

As for any of that think share buybacks are some super evil corporate trick, I have a challenge for you. Simply do a search online for companies buying back most stock. Do not use raw dollars it will always be Apple. The metric to use is % of market cap. If buybacks are such an evil trick, just buy every stock on that list. I will give you a hint on some of the companies currently at the top of the list Kohls, Tupperware, Whirlpool, Meta these stocks have stunk this year. It is no magic bullet to
companies enriching the executives or the shareholders. I do own all 4 of those stocks, currently have losses on 3 of the 4. I still think they are good stocks, but only a small part of that is the buyback.

markansas

@southbeachguy Shell Reports Record $11.5 Billion Profit .. this is what i found on shell oil
Shell said it would set aside $6 billion in the third quarter to buy back shares
https://www.reuters.com/business/energy/shell-total-continue-buyback-bonanza-after-record-profits-2022-07-28/

SW-User

@southbeachguy companies are constantly spending money on everything except what benefits the customer and the employee, or a emergency rainy day fund in case a global catastrophe happens. No company should ever require a bailout, or money from the government during a pandemic, or a tax cut when taxes are no where near 1950s booming economy levels, if they had been using their money wisely. What did companies do after the Trump tax cut that was supposed to generate lots of new jobs? Buy back their stock? What do they do with COVID bailouts? Buy back their stock? How many pharmaceutical companies still spend a substantial percentage on research and development, instead of marketing or mergers and acquisitions (like Valeant, which tried to then survive on drastically hiking drug prices).

F-ck shareholders.
F-ck shareholders.
F-ck shareholders.

southbeachguy · 46-50, M

As for the 1% tax it is just a foot in the door. Democrats hate the lower corporate tax rates passed under Trump, they are doing everything possible to raise corporate tax revenue. The 15% global minimum tax is horrible, the buyback tax is horrible. Corporations should pay no taxes, all dividends and capital gains should be taxed at regular income tax rates. That would actually be extremely friendly to taxpayers making under 400,000 all the way down to 0. Those making over 400,000 would actually pay more in taxes than the current system.

badminton · 61-69, MVIP

@southbeachguy Corporations pay very little to no taxes, in part because most of their income is declared non-taxable. When they do pay taxes the super-wealthy pay a much lower rate than the average person. Corporations used the 2017 tax cut entirely for stock buy-backs, which create no jobs or help the over-all economy.

Ever since the Reagan administration there has been an ever-widening gap between the billionaire/ corporate class and the rest of us. Stock buy-backs and off-shore tax havens should be totally illegal (they were legalized under Reagan.) Or at the very least stock buy-backs should be heavily taxed. Congress should restore ALL the New Deal era regulations on the financial industry. The 1929 and 2008 crashes prove the financial industry cannot be trusted to regulate itself.

We the people should force corporations and the super wealthy to do their patriotic duty and pay their fair share of taxes.

southbeachguy · 46-50, M

Okay things like they used the money entirely for buybacks are dumb. The total amounts may end up being similar, but it is company by company. Again be careful what you ask for, the first alternative to share buybacks are acquisitions. I would guess your politics would mean that you do not like companies getting larger and large to squeeze out the small companies? Tax havens are 100% overrated and also unrelated to share buybacks. If you owned a gas station 50-50 with your brother. Every year it made about 100,000 you let him keep the 100,000 you grow your ownership stake 5% every year for the next 10 years till you own 100%. That would essentially be a share buyback. Do you see anything wrong with that?@badminton

southbeachguy · 46-50, M

Stock buybacks are just a sometimes more tax efficient way of increasing stock prices. You can pay a dividend, you can buy other companies to increase your earnings. The angst towards stock buybacks is from people are not well informed market participants. For those that are well informed they understand in general companies do a horrible job of timing often buying high not low on buying back shares. Stock buybacks do little to widen any wealth gap, the wealth gap is widened by the simple fact that the more money people have the more they invest.

deadgerbil · 26-30

Anything to line their own pockets instead of helping their own workers. Gotta love the corporate greed 😷

MarineBob · 56-60, M

I'm sure they made contributions to the senators

This message was deleted by its author.

MarineBob · 56-60, M

@LordShadowfire im pretty sure i ask you before no leave my deceased mother out of your comments

LordShadowfire · 46-50, M

@MarineBob I'm pretty sure I was half asleep when I wrote that, and wasn't thinking. Deleted.

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