> far too much wealth transfer from companies to investors
The investors (shareholders) own the company.
The investors (shareholders) own the company.
It's capital and assets are held apart from the investors for the traditional reasons.
Are share buybacks always in the best interest of the company?
I'd argue that they're nearly always in the best interest of investors only, especially when accomplished via selling assets, selling assets and then leasing them back, or just straight out taking on debt, that they harm the company, and accordingly, the employees of the company.
One has to ask what in it for the government?
A vibrant and productive tax base? Happy citizens?
To be clear, I think the tax-treatment discrepancy between buybacks and interest is B.S. (More so than the income and capital gains discrepancy.)
Company value unchanged but fewer shares outstanding literally means value per share for holders goes up.