RE:RE:Dividend Total hypocrisy like liquor and smokes. But unlike sin taxes, this idea is incredibly stupid, short sighted, provides zero benefit to anyone, and is doomed to backfire. Stock buybacks don't cause cancer, destroy families, or fill hospital and rehab beds. There are plenty of ways for companies to avoid that tax and that "stick" will NOT encourage capital spending. Using oil as the primary target, producers won't drill more, or build more pipes and refineries because of a tax on buybacks. Not only is more capex in oil production counter the WOKE agenda, irs completely dependent on higher commodity prices. Period. So it's a "trial balloon" and something they can talk about wanting to do at rallies and fundraisers just like the tax they talked about on Canadian banks.
marketsense wrote: Have been thinking about that as well. If they tax share buybacks then it would make
sense to either raise the dividend or pay down more debt with their FCF. Maybe a
combination of both.
Then it wouldn't surprise me if the next move by the Liberals would be to go after
windfall profits by either taxing an arbitrary % straight off the top and or taxing
dividends. Gov't hates anyone circumventing their taxation plans. The whole
thing is about maximizing tax revenue on an industry they use like a golden goose
yet despise as an anethama to their green agenda. Total hypocrisy but there it is.