Mark Cuban calls stock buybacks ‘everything wrong with what companies do’ but says the Senate’s plan to tax them tops the ‘bad taxes’ list

That’s all congress does. We agree there. But just say that. Don’t try to justify buybacks. Buybacks, IMHO, are everything wrong with what companies do. It’s a response to pressure from big investors, to CSuite who want to engineer EPS, to try to goose the stock, to hit bonuses

— Mark Cuban (@mcuban) August 11, 2022

There are no good taxes. But, when Congress sees financial engineering, and it’s to the exclusion of a significant number of stakeholders, of all the bad taxes, taxing buybacks rockets to the top of the list.

— Mark Cuban (@mcuban) August 11, 2022

If it were my call, I would have created an exemption to the tax that said if all employees receive shares at an equal ratio to their W2 + Kx pay, then no tax. But we know few CEOs would accept that. So I would have made the tax 2% 🙂

— Mark Cuban (@mcuban) August 11, 2022

Enjoyed exchanging ideas on the tax on stock buybacks. We seem to agree that there are no good taxes. (I don’t want to speak for @norbertjmichel ) But, sometimes there are necessary taxes. Click below to see the full thread ! https://t.co/0L0ejKh0pT

— Mark Cuban (@mcuban) August 11, 2022