Toomey: Radical Left Wing of Democratic Party Doesn't Like Capitalism — 'Vilification of Stock Buybacks Is Completely Ridiculous'

Tuesday on CNBC’s “Squawk Box,” Sen. Pat Toomey (R-PA) weighed in on the Biden administration’s new proposals over corporate stock buyback restrictions and a billionaire minimum income tax.

Toomey argued that there is a socialist, left-wing of the Democratic Party that “doesn’t like capitalism.” He lamented the “vilification” of stock buybacks, calling it “completely ridiculous.”

“[W]hen I look at the proposals, the huge tax increase on income, on corporate income, on this so-called billionaires tax, this stock buyback, this looks to me like, first of all, it’s not going to happen,” Toomey declared. “This is a big gesture to the radical left, right, the wing of the Democrats that don’t like capitalism — actually, probably a third consider themselves socialists in the first place. This is a terrible policy, terrible ideas. A stock buyback is simply the economically rational, sensible thing to do, and the management of a company decides they can’t productively deploy marginal capital. And they’ve got an obligation to return it to the people who own the company.”

“And the beauty of the mechanism is you as an investor can decide whether you want to sell or not. That’s exactly what should happen in a free society and a free market economy. This vilification of stock buybacks is completely ridiculous.”

Follow Trent Baker on Twitter @MagnifiTrent

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