Commentary
The Biden administration has passed a 1 percent tax on stock buybacks. A stock buyback is when a public company uses its own cash to buy back its own stock. Sometimes it is financially in the best interest of the company to actually borrow money to buy back stock.
Democrats dislike stock buybacks because they don’t understand them or why companies do them. Many Republicans don’t understand them either. The provision was added to the tax bill that went through Congress last year to fight—you guessed it—climate change. Why corporate stock buybacks should be taxed to save the environment is beyond reason….