Sinema stock buyback tax would hit retirement accounts, business groups say
by Zachary Halaschak, Economics Reporter |
| August 05, 2022 11:46 AM
The largest business group in the United States is warning a new Democratic plan to tax stock buybacks could end up hurting retirement savings.
The stock buyback plan, proposed as a compromise by Sen. Kyrsten Sinema (D-AZ), is facing blowback from the U.S. Chamber of Commerce. The group said the tax proposal, which envisions a 1% excise tax on corporate buybacks, would filter down and have a deleterious effect on average investors.
“Unfortunately, the new excise tax on stock buybacks will only distort the efficient movement of capital to where it can be put to best use and will diminish the value of Americans’ retirement savings,” said Neil Bradley, chief policy officer at the chamber.
Stock buybacks, when corporations believe their shares are undervalued and buy up their own company stock to reduce the number of outstanding shares in the market, have become increasingly common over the years.
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https://www.washingtonexaminer.com/policy/economy/chamber-sinema-stock-buyback-tax-retirement
