• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Why a tax on share buybacks could actually boost stock prices

Never met a tax liberals didn't like.:poop:

More money to government, tax the air that we breath, set forth a decree that the entire world shall be taxed.

It's not like governments can just print the money we need, they need to tax us too.(y)
 
There should be a Federal tax applied to ALL stock purchases. Think of the revenue it would produce as a result of day traders alone.
Just one share of BRK.A bought today would produce more than $8,000 revenue to the Treasury.
What better way to tax the rich and wealth accumulation?
IMO, the Federal government should ONLY be allowed to tax States, and businesses which sell their products/services nationally/internationally.
 
There should be a Federal tax applied to ALL stock purchases. Think of the revenue it would produce as a result of day traders alone.
Just one share of BRK.A bought today would produce more than $8,000 revenue to the Treasury.
What better way to tax the rich and wealth accumulation?
IMO, the Federal government should ONLY be allowed to tax States, and businesses which sell their products/services nationally/internationally.
Won't that lead to less trading? Also how would the cost basis be calculated?
 
Won't that lead to less trading? Also how would the cost basis be calculated?
Not necessarily, though if the tax were 2% you would not break even unless you were able to sell at a price 2% higher than what you bought the stock for.
The cost basis would be the price of the stock, not including the tax.
 

Good read. A tax on buy backs can make biden bull market last even longer.

Sure, and a tax on company buybacks would also encourage paying out profits as dividend. Which could also be taxed.

Dividends were a really sound idea, but in many cases could be written out of corporate charters by their board. The expectation that capital growth (increase in share price) will exceed profits and therefore dividends, is driving corporations to make bad long-term decisions. Paradoxical perhaps, but at the very least we could legislate that boards and CEO's who make measurably bad decisions, should be penalized instead of golden-parachuted out.
 
Not necessarily, though if the tax were 2% you would not break even unless you were able to sell at a price 2% higher than what you bought the stock for.
The cost basis would be the price of the stock, not including the tax.
I think any financial transaction tax needs to be included in the cost basis.
 
I think any financial transaction tax needs to be included in the cost basis.
For making a decision of when to sell I agree, for tax purposes I do not.
 
There should be a Federal tax applied to ALL stock purchases. Think of the revenue it would produce as a result of day traders alone.
Just one share of BRK.A bought today would produce more than $8,000 revenue to the Treasury.
What better way to tax the rich and wealth accumulation?
IMO, the Federal government should ONLY be allowed to tax States, and businesses which sell their products/services nationally/internationally.

Yea, that's incredibly stupid. There is a reason why even Chucky Schumer won't talk about this. Basically it is the fastest way to get the exchanges in NY and Chicago specifically to suddenly disappear overseas. Why on earth would I not just trade on a foreign exchange that is still demonimated in dollars?

Won't that lead to less trading? Also how would the cost basis be calculated?

I think any financial transaction tax needs to be included in the cost basis.

I guess you don't know how anything in the financial world works? I guess that is what happens when you are poor and just complain about it all day on the internet. There are already exchange fees tacked on to trades as well as commissions often. Those fees are simply added to the acquisition cost of the purchase lot and divided amongst the number of shares or positions acquired. Basic stuff.
 
For making a decision of when to sell I agree, for tax purposes I do not.

Good lord, another person who doesn't understand how anything actually works. Your cost basis, of anything, is your total acquisition cost.
 
I guess you don't know how anything in the financial world works? I guess that is what happens when you are poor and just complain about it all day on the internet. There are already exchange fees tacked on to trades as well as commissions often. Those fees are simply added to the acquisition cost of the purchase lot and divided amongst the number of shares or positions acquired. Basic stuff.
There is no financial transaction tax genius so we have no idea how the govt would calculate it in a hypothetical scenario. Nowadays there aren't many brokers that charge commission. You definitely have never traded a stock in you life. Not a surprise.
 
Yea, that's incredibly stupid. There is a reason why even Chucky Schumer won't talk about this. Basically it is the fastest way to get the exchanges in NY and Chicago specifically to suddenly disappear overseas. Why on earth would I not just trade on a foreign exchange that is still demonimated in dollars?
American citizens are taxed on their worldwide income, but then maybe it would make sense for ALL exchanges worldwide to tax sales an equal percentage.



I guess you don't know how anything in the financial world works? I guess that is what happens when you are poor and just complain about it all day on the internet. There are already exchange fees tacked on to trades as well as commissions often. Those fees are simply added to the acquisition cost of the purchase lot and divided amongst the number of shares or positions acquired. Basic stuff.
I may not know anything, but I've profited from what I know every year since I began investing. It doesn't really matter to me if the market goes up or down, but it seems to have a negative effect on a growing number of the population. A tax on stock purchases would only require me to make a minor adjustment in my decision making process.
 
Good lord, another person who doesn't understand how anything actually works. Your cost basis, of anything, is your total acquisition cost.
Yes, for the purpose of making a profit as the result of a sale, but not necessarily my tax basis. The share price when sold minus the share price when bought determines the gain/loss for purposes of taxation, brokers fees are not included.
 
There is no financial transaction tax genius so we have no idea how the govt would calculate it in a hypothetical scenario. Nowadays there aren't many brokers that charge commission. You definitely have never traded a stock in you life. Not a surprise.

Sure, there is nothing to guarantee that they would add a tax into the basis, except for the fact that they include costs of assets in every other transaction as part of the basis. So they would effectively have to write a whole new precedent to exclude it from basis in this case, which would in turn lead to that rippling out to all sorts of other assets. Should be fun, stupid, but fun.

American citizens are taxed on their worldwide income, but then maybe it would make sense for ALL exchanges worldwide to tax sales an equal percentage.

Ok, at least now you make sense. Without the ability to institute a *global* rule all this would do is force all the trading to go offshore. Now the problem is you have to force every nation in the world to agree, including those tiny island nations. Never going to happen, but at least your plan is cogent now.


I may not know anything, but I've profited from what I know every year since I began investing. It doesn't really matter to me if the market goes up or down, but it seems to have a negative effect on a growing number of the population. A tax on stock purchases would only require me to make a minor adjustment in my decision making process.

How does the stock market have a negative impact on more and more people? On a net basis it is an marvelous thing for sure. It is easy to be in the black for the last ~13 years, it has been the easiest market..... ever.

Yes, for the purpose of making a profit as the result of a sale, but not necessarily my tax basis. The share price when sold minus the share price when bought determines the gain/loss for purposes of taxation, brokers fees are not included.

You are incorrect. Go to your brokerage account, buy a single share of stock and see what your basis is. It will absolutely be <execution price> + taxes/fees/commission.
 
Ok, at least now you make sense. Without the ability to institute a *global* rule all this would do is force all the trading to go offshore. Now the problem is you have to force every nation in the world to agree, including those tiny island nations. Never going to happen, but at least your plan is cogent now.
Which "tiny island" stock exchanges are you referring to?


How does the stock market have a negative impact on more and more people? On a net basis it is an marvelous thing for sure. It is easy to be in the black for the last ~13 years, it has been the easiest market..... ever.
It is a component of our rising cost of living. It's been easy to be in the black for many decades, for many of us.

You are incorrect. Go to your brokerage account, buy a single share of stock and see what your basis is. It will absolutely be <execution price> + taxes/fees/commission.
Ideally, taxes and other fees should not be tax deductible.

I'm open to hearing what you feel needs to change with our government spending and debt, and how you would accomplish such changes, if any?
 
Which "tiny island" stock exchanges are you referring to?

The one you just created with a financial transaction tax in the US.

It would take 20 minutes for new exchanges to pop up in BVI, Cayman, and Bermuda.


It is a component of our rising cost of living. It's been easy to be in the black for many decades, for many of us.

Lol. That's a first. I will have to check the CPI methodology again and see.

Ideally, taxes and other fees should not be tax deductible.

I'm open to hearing what you feel needs to change with our government spending and debt, and how you would accomplish such changes, if any?

I would start by replacing a large portion of the actual income tax code with a VAT. Put in a ~10% VAT in exchange for the first ~100k of income not being taxed as FIT. Maintain payroll taxes as they are. Switch to a territorial corporate tax system at a ~15-18% rate. Reshape the entire entitlement system with means testing, work requirements, and behavioral requirements. Change medicare/medicaid from being cadillac insurance programs to full on rationed government sustainment programs rather than aggressively interventional. Withdrawal US troops from foreign soil except where it purely serves American interest, keep the logistical bases in Germany and Italy, move the rest of the troops out of Europe and focus on encircling China instead. Revisit citizenship in the SCOTUS and if necessary amend the constitution to shift away from right of soil to right of blood. Legalize weed, because it is a failure and too expensive to continue to fight against. Reform the prison system to get it from being an industry to being a last resort with teeth.
 
The one you just created with a financial transaction tax in the US.

It would take 20 minutes for new exchanges to pop up in BVI, Cayman, and Bermuda.
That quick huh? And the IRS could add a new form to indicate shares bought/sold on those exchanges to assure the Federal tax is paid.



Lol. That's a first. I will have to check the CPI methodology again and see.[/QUOTE]
okay.

I would start by replacing a large portion of the actual income tax code with a VAT. Put in a ~10% VAT in exchange for the first ~100k of income not being taxed as FIT. Maintain payroll taxes as they are. Switch to a territorial corporate tax system at a ~15-18% rate. Reshape the entire entitlement system with means testing, work requirements, and behavioral requirements. Change medicare/medicaid from being cadillac insurance programs to full on rationed government sustainment programs rather than aggressively interventional. Withdrawal US troops from foreign soil except where it purely serves American interest, keep the logistical bases in Germany and Italy, move the rest of the troops out of Europe and focus on encircling China instead. Revisit citizenship in the SCOTUS and if necessary amend the constitution to shift away from right of soil to right of blood. Legalize weed, because it is a failure and too expensive to continue to fight against. Reform the prison system to get it from being an industry to being a last resort with teeth.
I'm not too keen on the idea of a VAT, or any progressive tax system at the Federal level of government.
Some of the remainder, I might be able to work with though.
 
That quick huh? And the IRS could add a new form to indicate shares bought/sold on those exchanges to assure the Federal tax is paid.

Uh, so you are intending to impliment a tax on foreign transactions? That only violates pretty much every trade agreement in history. Even if you did do that, it just means capital flight explodes.
 
Uh, so you are intending to impliment a tax on foreign transactions? That only violates pretty much every trade agreement in history. Even if you did do that, it just means capital flight explodes.
Uh, sort of, if need be.
Which trade agreements?
As long as it gets taxed, let it move.
 
Back
Top Bottom