Part-Time Chad
Diamond
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Once again, the left's utter disdain for capitalism and free markets was on full display, when they unanimously passed a law earlier this year that taxes corporations 1% on share buybacks.
Share buybacks were a contributing factor in the stock market's stellar performance over the past 13 years. But with this new law, that takes effect in 2023, it will either result in lower returns for the average investor and/or a higher tax bill at the end of the year.
By some estimates, returns will be reduced by about 10 basis points on a 10% average annual return in U.S. equities. On a 1 million dollar portfolio of domestic stocks, that amounts to 1 thousand dollars a year. That money could have been reinvested and allowed to compound away in your portfolio, instead, it's going to be diverted to the government's coffers and used to fund their woke social engineering agenda.
Corporations could decide to raise their dividends in lieu of buybacks to return value to their shareholders. However, if you hold your U.S. stocks in a taxable account, those dividends will be taxed at the end of the year. That wouldn't have happened if the value of your shares simply went up.
These weren't 'unintended consequences' of this new law; they were very much intentional. It was just another underhanded street thug tactic employed by dirty degenerate Democrats to tax you from the back door and reroute resources away from you. These slimy motherfuckers knew exactly what they were doing.
What motivates these insufferable assholes to pass laws like this, which stunts prosperity, is their goal of imposing communism in America.
That's right. They want to control every aspect of your life, including what you do, think and feel. They resent that you're independent and own private property. If they had their way, all property would be owned by the state, and you would have to ask permission to lease it. These people hate freedom and thrive on people's misery. I wish they were all dead.
Share buybacks were a contributing factor in the stock market's stellar performance over the past 13 years. But with this new law, that takes effect in 2023, it will either result in lower returns for the average investor and/or a higher tax bill at the end of the year.
By some estimates, returns will be reduced by about 10 basis points on a 10% average annual return in U.S. equities. On a 1 million dollar portfolio of domestic stocks, that amounts to 1 thousand dollars a year. That money could have been reinvested and allowed to compound away in your portfolio, instead, it's going to be diverted to the government's coffers and used to fund their woke social engineering agenda.
Corporations could decide to raise their dividends in lieu of buybacks to return value to their shareholders. However, if you hold your U.S. stocks in a taxable account, those dividends will be taxed at the end of the year. That wouldn't have happened if the value of your shares simply went up.
These weren't 'unintended consequences' of this new law; they were very much intentional. It was just another underhanded street thug tactic employed by dirty degenerate Democrats to tax you from the back door and reroute resources away from you. These slimy motherfuckers knew exactly what they were doing.
What motivates these insufferable assholes to pass laws like this, which stunts prosperity, is their goal of imposing communism in America.
That's right. They want to control every aspect of your life, including what you do, think and feel. They resent that you're independent and own private property. If they had their way, all property would be owned by the state, and you would have to ask permission to lease it. These people hate freedom and thrive on people's misery. I wish they were all dead.
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