4 Big Tech giants have plowed over $1 trillion into stock buybacks in 10 years — more than Tesla or Meta’s entire market value::Apple poured over $600 billion into buybacks in the decade to March 31, exceeding Alphabet, Microsoft, and Meta’s combined spending.
600 billion worth of:
- Unpaid wages
- Fairer/Higer wages
- Better working conditions
- Additional jobs
- Environmental damage averted
- Research & development
Why are stock buybacks not taxed at 80%?
They were basically illegal until 1982. It was considered, and I believe still is, market manipulation.
Going public is a way to raise money. It seems like a stock buyback would simply be a way to pay it back, at a fair market value, and eventually take back control of the company. Long-term that sounds like a good move, as then the company is no longer saddled with their primary responsibility as making money for their stockholders. Instead it can focus on the doing stuff that actually matters and is valuable for the long-term health of the company, it’s employees, and the planet… ideally.
Ideally. Unfortunately, the people doing the buybacks now are no different than 19th century industrial barons; once they have a household name due to sheer wealth, they stop pretending (if they even bothered to in the first place) that they’re in any way good people.
as then the company is no longer saddled with their primary responsibility as making money for their stockholders.
Hah! If only that were true.
Yay! Trickle Down Economics
Because buybacks are already taxed at the normal capital gains tax rate. Targeting stock buybacks is stupid. Just say you want to increase corporate taxes overall. Easier and more effective at raising money.
But this is not enough. The fact that companies put this money into the stock value itself instead of the company should be discouraged.
I don’t understand how this is not manipulating the stock price when done at this scale.
put this money into the stock value itself instead of the company
It’s the same thing.
manipulating the stock price
It’s not because they announce it way ahead of time. Manipulation would be Apple buying a bunch of stock right before they announce the new iPhone, then selling after the announcement. That’s very illegal.
Giving money to existing shareholders is completely legal (as long as you give it equally per share) because it’s the shareholders’ money. They own the company.
Your example would be manipulating for the company. Stock buybacks primarily manipulate for the execs and large shareholders. Even though they have reporting requirements, they benefit from the general increases in price.
If the company wants to give money to shareholders, they could do that in the form of dividends.
No one is being manipulated. The company is handing the stockholders their own profits. Dividends are the same thing, just taxed differently.
The only thing trickling down is shit and piss.
Didn’t buybacks used to be illegal?
After they helped cause the Great Depression, yes.
Good thing we learned from that.
Any minute now the trickle down will start and everything will be fine. Any minute now…
All I’m feeling from that trickle down thing is piss.
