They are taxed. If there’s a capital gain when BigCorp buys my stock back, I pay taxes on it. You can argue whether or not Capital Gains is too high or low but the mechanism is there.
Then there’s the question of what I do with the money. If I invest it in government bonds, they get the remainder. Otherwise the money gets recirculated through consumption or other investment.
If you really think companies are too eager to return money to shareholders, take away deductibility of interest. This would dissuade companies from borrowing money to buy shares. (Effectively creating debt from equity)
Then there’s the question of what I do with the money. If I invest it in government bonds, they get the remainder. Otherwise the money gets recirculated through consumption or other investment.
If you really think companies are too eager to return money to shareholders, take away deductibility of interest. This would dissuade companies from borrowing money to buy shares. (Effectively creating debt from equity)