Why Buybacks Are Just Another Form of Investing

I go out of my way not to talk about politics because there's simply no upside...

And I'm not about to start now, other than to say...

I have been a registered independent since I was a journalist, and I'm about as centrist as centrist can be. I tilt left on social issues but to what I'd like to think is "common sense" on everything else.

So when politicians start cheering efforts to punitively tax or shame companies that repurchase their outstanding shares, I just shake my head.

I'm not the first person to say this, and I won't be the last, but buybacks are simply a more tax efficient way to get money back to shareholders.

Dividends are taxed as income at the date of distribution. Buybacks only impact taxes if they result in a higher share price, taxed at cap gains, and long in the future.

And in a free market, it's none of the government's business how public companies spend with their money...

If they want to engage in aggressive or downright smarmy – even embarrassingly scummy – behavior…