Mark Cuban says companies should be taxed more for buying back their own shares
The "Shark Tank" star called it "a way to charge the biggest public companies more" while shifting incentives toward long-term growth.
Stock buybacks, also called share repurchases, happen when a company buys back its stock from investors, often reducing the number of shares in circulation.
This can boost earnings per share and, in turn, the stock price, benefiting remaining shareholders. Critics say the practice can prioritize short-term gains over long-term investment.
American companies bought back $166 billion in shares in July — the highest July total on record — bringing the year-to-date tally to $926 billion, surpassing the previous year-to-date record set in 2022 by $108 billion, per data from stock market research firm Birinyi Associates.
The US has had a 1% tax on stock repurchases on publicly traded corporations since the Inflation Reduction Act, which took effect on January 1, 2023.
Cuban said that a higher tax could encourage firms to use the cash to expand or pay dividends to shareholders, which he said would be tax-free for many Americans.
"Married households making under 94k pay no taxes on it," Cuban wrote. "If I own it. I pay full taxes."
In a follow-up X post, Cuban suggested exempting companies from the higher tax if they distributed repurchased shares to all employees, from interns to the CEO, based on each worker's share of total annual cash earnings.
He said this would be a "baby step" toward reducing income inequality and boosting workers' net worth.
A market correction could encourage more buybacks
Citi predicted in a March note that there would be $1 trillion in buybacks for the year, up 11% from about $900 billion in 2024.
The bank said market declines could spur more repurchases, as companies seize the chance to buy their shares at discounted levels.
Citi said large firms like Apple, Alphabet, Nvidia, Wells Fargo, and Visa repurchased roughly $190 billion in stock last year alone.
Citi's forecast came before a series of market warnings from Wall Street strategists.
Analysts at BTIG, Evercore ISI, Stifel, Morgan Stanley, and Wells Fargo have all flagged the potential for a correction in the S&P 500 in the coming months.
They cited stretched valuations, seasonal weakness in August and September, and uncertainty over tariffs' economic impact.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Newsweek
a few seconds ago
- Newsweek
Insider Puts Cadillac F1 Team Under The Spotlight Amid Driver Uncertainty
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Former Formula One champion Jacques Villeneuve has opened up on the uncertainty surrounding the Cadillac F1 team's driver lineup and its approach to racing in 2026. Cadillac F1's initial bid, which was led by Andretti Global, was rejected on financial grounds. However, with an increased participation of General Motors and a new management owned and operated by TWG Global, the bid was approved for Cadillac F1 to become the sport's eleventh team in 2026. However, with just ten rounds remaining for the conclusion of the 2025 season, the American outfit has yet to announce its driver lineup. Cadillac F1 reportedly prefers experienced drivers and is said to have shortlisted Sergio Perez and Valtteri Bottas. But with an announcement yet to be made, the picture seems uncertain. Cadillac F1 has partnered with Ferrari to procure its power units from 2026 until it fields its own power units in 2029. However, Villeneuve has raised questions, especially with Michael Andretti having moved out of the way, since the team is yet to establish itself. This is unlike Audi, which concluded its takeover of the Sauber F1 team, and the results are already showing in Sauber's performance. Speaking to RacingNews365, he said: People attend an event to unveil the colors for the 2026 Cadillac debut in Formula One racing, ahead of the 2025 Miami Formula One Grand Prix, in Miami Beach, Florida, on May 3, 2025. People attend an event to unveil the colors for the 2026 Cadillac debut in Formula One racing, ahead of the 2025 Miami Formula One Grand Prix, in Miami Beach, Florida, on May 3, 2025. Giorgio VIERA / AFP/Getty Images "Who knows what's going on there. It's not the same team as a year ago. The whole project has changed, and the way it came in, forcefully, is not the best way either, but at least now they're in, fine. "The question is, what will they do? What drivers will they choose? Who do they put in place?" Highlighting the improvements in Sauber's pace this season, Villeneuve added: "When you look at what Sauber has done, with Audi coming in, [with] Jonathan Wheatley, you already see the results now, even though it's the same car. Just the way the energy, the working... So you can expect great things there. "We don't know with Cadillac yet. They say they want experienced drivers, right? But you want good, experienced other thing, we have no idea which engine will be good, that's a big... Well, okay, we'll find out." The 1997 F1 champion emphasized that Cadillac F1 will have to sign a big paycheck if it wants to hire a good racing driver. He said: "Depends on how much money they put on the table. Because you want to get one of those drivers [a pure racer], you're a new team, you need to put [down] a big cheque. "But with the value of F1 now, the big cheque is nothing. It's peanuts compared to what it used to be."
Business Insider
a few seconds ago
- Business Insider
'Shark Tank' star Kevin O'Leary's next project is movie acting. He says he loves it when 'people say I can't do something.'
Kevin O'Leary plans to keep working until the day he dies — and beyond. "I'm never going to retire," he told Business Insider in a wide-ranging interview. "That's because I'm a vampire," he quipped, playing up his reputation as a cold-blooded capitalist, earned from years as a "Shark Tank" investor. O'Leary is known for cofounding SoftKey in the mid-1980s, building it into The Learning Company, then selling the educational-software business to Mattel for $4.2 billion in 1999. He's also the founder of O'Leary Funds and O'Leary Ventures, and has invested in companies such as Basepaws on "Shark Tank." The 71-year-old said that working, especially past 60, keeps people's minds sharp, and that doing things "outside of your comfort zone" that cause you some "stress" has been key to his staying healthy in body and mind as he's aged. The self-proclaimed "Mr. Wonderful" said he relishes competing and "being in the game." When others predict he'll fail at a challenge, it "just motivates me to go kick ass" in that industry, he said. "I just love it when people say I can't do something," he added. O'Leary's latest adventure isn't investing or starting a company: he has a major role alongside Timothée Chalamet in " Uncut Gems" director Josh Safdie's next movie, "Marty Supreme." The celebrity investor told Business Insider he initially balked at the idea as he had no experience performing from a script. He recalled the producers replying, "We don't care, we're not asking you to act. We're looking for a real asshole, and you're it. We just want that guy that we know from 'Shark Tank.'" O'Leary said he "never looked back" and was soon on set. O'Leary's performance is prominent in the movie's trailer, which gives him fourth billing behind Chalamet, Gwyneth Paltrow, and Odessa A'zion. "I think that helped me in business. I think it helped me be disciplined," O'Leary said of the "remarkable" experience. Wine and worry Asked what keeps him up at night, O'Leary replied that his "one sin" is "drinking wine too close to bedtime." O'Leary said he's " really into longevity" — minding what he eats, not smoking or taking drugs, and trying to exercise daily. But he said he's found "the older I get, the better the wine gets." Sleep is so vital that you "can't let your problems keep you awake, because that's very unhealthy," O'Leary said. O'Leary told Business Insider that there are always good and bad days, describing that as "volatility" in business, relationships, and life. He said he'd recently received a "catastrophic" call from one of the entrepreneurs he had invested in, saying their company was being sued. Twenty minutes later, he learned on another call that one of his team's investments six years ago would be going public, and he stood to make 43 times his money. "So there's utter despair, and a few minutes later, utter euphoria," he said. "Sometimes the poo-poo hits the fan one hour. And then something beautiful happens the next. You've got to roll with it," he added.
Wall Street Journal
a few seconds ago
- Wall Street Journal
More Workers Are Getting Job-Skill Certificates. They Often Don't Pay Off.
More Americans are turning to a booming market for skills credentials—from digital-marketing certificates to online courses in artificial intelligence—to bolster their résumés. Yet most programs deliver few material returns, a new study finds. These certificates, digital badges and other nondegree credentials have proliferated as more academic institutions and other providers spot a lucrative business. Workers, though, have few tools to assess which of thousands of options are worth their time and money. Employers, too, often struggle with what to value.
