Lion of the Blogosphere

Marco Rubio must be reading my blog!

Last week, I wrote that I agreed with Sanders/Schumer on stock buybacks because they are a tax loophole that allows corporations to evade the dividend tax.

Marco Rubio has proposed a plan to tax stock buybacks like dividends.

Under the plan, any money spent by companies on buybacks would be considered, for tax purposes, a dividend paid to shareholders — even if investors did not actually sell their stock. Every shareholder would receive an imputed portion of the funds equivalent to the percentage of company stock they own.

Big thumbs up to Marco Rubio for having the courage to go against Republican orthodoxy that any tax loophole is a fast one that they pulled on the Democrats.

Written by Lion of the Blogosphere

February 13, 2019 at 9:43 AM

Posted in Taxes

8 Responses

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  1. I wonder how he must feel given the blog’s prole view of Florida, which is his beloved state of residence.

    Ok, what, who's this again?

    February 13, 2019 at 10:12 AM

  2. I would rather eliminate the corporate income tax all together and simply tax all personal revenue (possibly with some very limited exceptions, as well as an inflation index on capital gains) as income.

    Some Guy

    February 13, 2019 at 10:58 AM

  3. Rubio, despite being typecast as a typical swing state GOPe drone, has long been interested in populist reforms. Him and Mike Lee from Utah.

    IHTG

    February 13, 2019 at 11:32 AM

  4. Stock buybacks are retarded because when the stock eventually crashes, what will have been the point of driving up the price? Most people will not be smart enough to cash out in time when the NYSE crashes by 2/3rds.

    GE, GM and Apple bought back stock and lost on those purchases.

    The top 20 stock buyback programs in corporate America have spent $1.4 trillion buying back their own shares since the Great Recession ended.

    Most of the stocks being repurchased by company management have not outperformed the S&P 500.

    https://www.cnbc.com/2018/12/11/investors-should-be-furious-3-stock-buybacks-that-went-horribly-wrong.html

    Even high IQ people are very dumb because they don’t question their assumptions and just follow the herd. On the other hand, your life will generally suck if you don’t follow the herd because they control everything. All the adoration and distinction that everyone craves. Sure we could just live the simple life and be content, but who wants that? Any Joe Schmoe can just live the simple life. We want to be BETTER than others. Otherwise there is no point.

    Fact Checker

    February 13, 2019 at 12:27 PM

  5. Nice to see to see the private equity guys (Adelson) sticking it to the slimy stock manipulators. I wonder how this bodes for the Goldmans of the world?

    Curle

    February 13, 2019 at 9:14 PM

    • I think you mean Adelson is behind this, and we can expect a measure like this to hurt Goldman’s business. How much of Goldman’s business is tied up in stock buybacks though? In what, consulting?

      Lowe

      February 14, 2019 at 10:26 AM

  6. Rubio struck me as a crypto-commie when I met him. This is just another random tax scheme to screw up the economy, rob the worker, than blame capitalism.

    #TaxationIsTheft

    The Old Libertarian

    February 15, 2019 at 1:13 AM


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