, Columnist
Lawmakers Don't Understand How Stock Buybacks Work
Repurchases benefit all shareholders, much like dividends.
Everyone can get a piece of the pie.
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Share buybacks are a hotly debated topic during this economic expansion and bull market. Many are worried that the Republican tax cuts will further exacerbate growing wealth inequality, particularly as the majority of the benefits will be returned to shareholders in the form of increased stock repurchases.
This has led Democrats in Congress to introduce a bill that would prohibit corporations from buying back their own shares. Senator Tammy Baldwin, the Wisconsin Democrat who introduced the bill, said, “The very partisan corporate tax bill has fueled a surge in stock buybacks that is hurting economic growth and shared prosperity for workers.”