Corporate experts, however, said companies view buybacks as an important part of their capital allocation strategy, factoring them in along with other investments and distributing resources based on what they believe will bring in the most returns. Ira Kay, a founder of consulting firm Pay Governance, believes that the 1% tax will discourage companies from participating in buybacks, either by scaling them back or being less likely to issue them. That isn’t a good thing, he said.
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