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New Tax on Stock Buybacks by Publicly Traded Corporations

This new law introduces a 2% tax on the value of stock repurchased by large publicly traded corporations. The aim is to discourage companies from buying back their own shares, which could influence their investment decisions and potentially the job market. Citizens might experience indirect effects through broader economic changes.
Key points
Publicly traded corporations will pay a 2% tax on the value of their own stock repurchases.
The tax applies to domestic and certain foreign corporations whose stock is traded on an established securities market.
There are exceptions, such as for small buybacks (up to $1 million annually) and stock issued to employees.
The changes will apply to repurchases made after December 31, 2021.
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Expired
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Additional Information
Print number: 117_S_2758
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2021-09-20
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Stock Buyback Accountability Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_2758.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-09-20.

What are the main provisions?

Key points include:

  • Publicly traded corporations will pay a 2% tax on the value of their own stock repurchases.
  • The tax applies to domestic and certain foreign corporations whose stock is traded on an established securities market.
  • There are exceptions, such as for small buybacks (up to $1 million annually) and stock issued to employees.
  • The changes will apply to repurchases made after December 31, 2021.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Brown, Sherrod [D-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Economy