Author Topic: Sinema stock buyback tax would hit retirement accounts, business groups say  (Read 470 times)

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Online mystery-ak

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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
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Online libertybele

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Lovely.  Things continue to crumble all around us. There's no stopping the destruction with no end in sight.
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Offline EdinVA

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I thought congress only had authority to tax income not potential income (booked)?
I don't see how this gets past the SCOTUS..

Online libertybele

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I thought congress only had authority to tax income not potential income (booked)?
I don't see how this gets past the SCOTUS..

?? Will it even be challenged?? 
I Believe in the United States of America as a Government of the people, by the people, for the people; whose just powers are derived from the consent of the governed; a democracy in a republic; a sovereign nation of many sovereign states; a perfect union one and inseparable; established upon those principles of freedom, equality, justice and humanity for which American patriots sacrificed their lives and fortunes.  I therefore believe it is my duty to my country to love it; to support its Constitution; to obey its laws to respect its flag; and to defend it against all enemies.

Offline EdinVA

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?? Will it even be challenged??
I suspect it will especially with all of this supply chain crap.  Companies are signing contracts for millions but delivery may be a year away, as is the payment.  I just don't see companies going along with paying "income" tax on revenue they have not received and may not for a year.