Payback For The Tax Windfall for Big Corporations
Here’s an idea on COVID relief that I haven’t seen anywhere, but it deserves serious consideration by the Congressional negotiators.
The recent Trump tax bill gave lots of money to big corporations, several of which responded with major buybacks of their own stock. The resulting increase in share value was a windfall for executives who were being compensated either with stock or with stock options.
Now that these same corporations are crying in their beer about how they’re suffering in the COVID pandemic, there’s a good response: they should issue new stock to raise money to cover their losses. That’s exactly symmetric with the windfall they got from the Trump tax bill. The share price will likely go down — but that just makes up for the rise in share price from the buyouts.