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Re: Um...
Quote:
Originally Posted by Adder
I actually think closing tax loopholes can lead to real world efficiency gains, but even if you do not, changing the incentives of those deciding whether or not to buy back is not merely confiscatory. Who knows what wonderous things they might suddenly discover to invest in if they didn't have the alternative option of using company cash to enhance the value of their holdings.
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But you didn't identify a tax loophole. A distribution of cash would be taxed. Appreciation in the stock would be taxed, too, and the sellers of shares of stock bought back pay taxes on their gains.
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“It was fortunate that so few men acted according to moral principle, because it was so easy to get principles wrong, and a determined person acting on mistaken principles could really do some damage." - Larissa MacFarquhar
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