Stock Buyback Accountability Act of 2023

Stock Buyback Accountability Act of 2023

This bill increases from 1% to 4% the rate of the excise tax on the repurchase of corporate stock.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 413 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                 S. 413

To amend the Internal Revenue Code of 1986 to increase the rate of the 
    excise tax on the repurchase of corporate stock, and for other 
                               purposes.


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                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2023

  Mr. Brown (for himself, Mr. Wyden, Mr. Schatz, Mr. Van Hollen, Mr. 
Reed, Mr. Lujan, and Ms. Baldwin) introduced the following bill; which 
        was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to increase the rate of the 
    excise tax on the repurchase of corporate stock, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stock Buyback Accountability Act of 
2023''.

SEC. 2. MODIFICATIONS TO TAX ON REPURCHASE OF CORPORATE STOCK.

    (a) Increase in Rate of Tax.--Section 4501(a) of the Internal 
Revenue Code of 1986 is amended by striking ``1 percent'' and inserting 
``4 percent''.
    (b) Modification of Adjustments.--Section 4501(c)(3) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``The amount'' and inserting the following:
                    ``(A) In general.--The amount'', and
            (2) by adding at the end the following new subparagraph:
                    ``(B) Exception for stock issued to covered 
                employees.--Subparagraph (A) shall not apply to so much 
                of the fair market value of any stock issued or 
                provided to an employee who is a covered employee 
                (within the meaning of section 162(m)(3)).''.
    (c) Effective Date.--
            (1) Rate.--The amendment made by subsection (a) section 
        shall apply to repurchases (within the meaning of section 
        4501(c) of the Internal Revenue Code of 1986) of stock after 
        the date of the enactment of this Act.
            (2) Adjustments.--The amendments made by subsection (b) 
        shall apply to stock issued or provided after the date of the 
        enactment of this Act, in taxable years ending after such date.
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