Taxing Buybacks
A proposed 1% tax on buybacks could shift corporate behavior, making this method of returning capital less appealing. As firms may opt for higher dividend payments instead, there's a risk that unreturned capital could be misallocated to unproductive ventures, ultimately lowering returns for investors. The broader implications of this policy raise important questions about capital efficiency and corporate responsibility.In this clip
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All Else Equal: Making Better Decisions
Ep 10 What's Wrong with Buybacks?
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