Mark Cuban says a tax on stock buybacks 'is a good idea' as repurchases reward investors for selling a company's shares

Mark Cuban thinks that a provision in the Democrats' spending bill that would tax stock buy backs is a good idea.

Cuban said that buybacks act as a reward for leaving and selling stock instead of rewarding the people who are keeping their stock. He said that companies have to decide between re-purchasing incentives and paying dividends if they want to reward their stockholders.

People don't like more taxes. Cuban said a tax on buy backs is a good idea.

The Democrats added a new provision to their tax and spending bill that calls for a 1% excise tax on stock buy backs, which is intended to raise money for government climate spending and healthcare. The legislation will be voted on by the House at the end of the week.

There are certain buybacks that aren't targeted under the provision.