• singron@lemmy.world
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    1 year ago

    Stock buybacks don’t reduce profit for the company. They are not accounted as an expense that offsets income. Investors pay capital gains tax instead of income tax that they would pay on an equivalent dividend, which is probably what you are thinking of.

    Net revenue, gross profit, operating income, EBITDA, and (net) profit are some well understood measures that take various things into account. E.g. net revenue subtracts the cost of inventory, but it doesn’t subtract wages, so it’s probably a good starting point for a discussion on redistributing earnings among workers.