Why did stock buybacks get taxed?

Stock buybacks have been a hot topic recently with the government's 1% tax on them.

In this video, I go over what stock buybacks are, why some people don't like them, and why Warren Buffet doesn't think they should be taxed.

On Twitter? I'll be posting there more soon:

Let me know what you think of the video in the comments.

Thanks for watching!

Disclaimer: I own none of the stocks mentioned in the video as of posting it, although I may in the future. This is not investment advice. Do your own research before purchasing any stock or security.

00:00 - Intro
00:05 - Buybacks 101
00:45 - Why people don't like them
03:19 - Warren Buffett's opinion

[readjonomy]

What is your opinion of stock buybacks?

[Xlorman-nrxe]

Noticed that the site wasnt up anymore, content looked really promising hopefully you decide to return to it some day.

[TheEuropeanInvestorYT]

very insightful video, thanks!
As in investor share-buybacks are an amazing thing, but only if the company can actually afford it.
Buying back shares for a company like MSFT, which has more cash than it knows what to do with - is a perfect way to reward shareholders.
Buying back shares for a company like Norfolk Southern, which reduces their capex to allocate more cash for share buybacks at the detriment of safety - not a good way of using buybacks.

so, I think it really depends, but overall I wouldn't be against taxing buybacks. They do reward shareholders directly, and is a big way that rich investors avoid taxes - by buying companies that do sharebuybacks which boost shareprice, and then take out loans with these increasing stocks as collateral so they never have direct capital gains, only unrealized ones.

[arvinzaker]

Hey what happened? Last upload was 2 years ago I love your videos!

[JohnyBhai-ic]

can you speak about croc stock please I'm very eager to know your views on the stock

[HepCatJack]

Bed Bath & Beyond could have paid back its debt to increase the per-share value and it wouldn't have been taxed like a BuyBack.

[freen]

the microphone is a side address microphone