Why Corporate
Share Repurchases Are Brewing Controversy
(Note:
all the sources listed in the “Balanced” section)
Proponents
of tax cuts that went into effect in 2018 argued it would make corporations
more competitive and stimulate higher wages for employees and increase capital
investment. Critics suggested the cuts
would benefit the wealthy with savings directed toward increasing executive
compensation tied to stock performance and returning capital to shareholders in
the form of higher dividends and share repurchases. With a surge in corporate stock repurchase announcements
in 2018, buybacks could attract more attention, particularly from Democratic
lawmakers who took control of the House in January.