Sen. Marco Rubio on Tuesday is rolling out his own plan to thwart stock buybacks, aligning with Democratic rivals who have recently condemned corporate stock repurchases as a source of the widening gap between average Americans and the wealthy.

The Florida Republican and former presidential candidate, according to CNBC, would reduce the incentives for buybacks by eliminating the preferential tax treatment of such purchases, which would be taxed as dividends.“

We think there are perverse government incentives. It’s about creating the right incentives so that company’s want to invest [in their businesses],” a senior aide for Sen. Rubio told MarketWatch.“He wants to encourage domestic investment and so we have a bill that would make full and immediate expensing permanent. The pay-for on that bill recognizes that share repurchases are tax-preferred over dividends, so we eliminate the advantage as a pay-for for full expensing,” the aide said.

Source: Marco Rubio rolls out his own plan to limit stock buybacks – MarketWatch