President Biden does have issues about buybacks that go properly past the CHIPS and Science Act. In his State of the Union deal with he referred to as for quadrupling the brand new 1 p.c tax on buybacks to encourage long-term investments. However it’s not clear that the tax would get the outcomes he desires. For one factor, firms might merely swap from buybacks to dividends.

Even when they keep the earnings, it’s not clear that firms would use them to rebuild the American economic system. They may elevate…


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