Paul Cantrell
I’m sympathetic to the current anger at stock buybacks, but not 100% on board with it because of one caveat: it seems to me is •possible• to use buybacks ways that help ameliorate the pressure for infinite growth.
I’m very interested in systems that just let a product go on being as good as it’s always been, making that sustainable. The pressure for growth is the enemy of that. If shareholders can only make money by either (1) making it grow even more or (2) stripping it for parts, well….
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Paul Cantrell
In •principle•, a company being able to raise the share price with buybacks instead of growth could help enable “good thing that lasts” models.
In principle. Not what’s happening in practice, clearly.
With that line of thinking in mind, I appreciate what @JessTheUnstill said:
https://infosec.exchange/@JessTheUnstill/111880357905897471
Yeah, what about dividends? What if we made •them• tax-advantaged — or at least not disadvantaged relative to capital gains?
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Paul Cantrell
@JessTheUnstill Very very much agreed, and your post recentering me on that basic principle was helpful.
On top of that, I’m inclined to even put a finger on the scale in favor of long-term stability over growth — but I was getting so wrapped up in thinking about that, I missed the far more basic, more important, and more urgent point you’re making. So thanks!
Jess👾
@inthehands
Both stock buybacks and dividends should be from post-tax earnings from the basic principle that a company used the country's infrastructure and residents to make those earnings, they owe it to the country to give their fair share back. What's left after paying taxes, they can make the business decision about whether they want to retain the cash for future investment and growth, do stock buybacks to reduce their outstanding shares, or pay it out to the shareholders as dividends. Any of those are acceptable choices. But a company should have to pay their taxes on their profits one way or another.
Paul Cantrell
@JessTheUnstill
[vigorous nodding]
Jess👾
@inthehands
And like I'm not opposed to using tweaks to the tax code to give businesses and investors incentives towards better and more sustainable behavior. Also, there's always going to be weird loopholes that companies use to dodge taxes that tax officials and legislators have to whack a mole. I just feel strongly about the fact that those who profit using our public infrastructure, goods, services, and markets should pay for it. Billionaires shouldn't be able to just continue increasing their wealth indefinitely without paying taxes.
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