Two “Bad” Tax Ideas Are Better Than OneWhy we need to tax stock buybacks and close the carried interest loophole. All sorts of contingent labor income—from performance bonuses to lawyer contingency fees to royalties—gets taxed at the top income tax rate. This leaves little reason to continue the carried interest tax loophole other than to make the already rich even richer. He argued that “from an economic perspective, carried interest should be taxed the same as other compensation for services.”Buyback Better? After all, if stock buybacks spend cash corporations are not investing, and there is little prospect that cash will be invested elsewhere, what do stock buybacks accomplish?

Source: Wall Street Journal September 17, 2022 15:39 UTC