WASHINGTON, D.C. — Congressman David Kustoff (R-TN) introduced the Protecting American Savers and Retirees Act in the House of Representatives. This bill will repeal the excise tax on stock buybacks by publicly traded companies.
The stock buyback tax, which was created in 2022 through Joe Biden’s Inflation Reduction Act, is a poorly designed tax that restricts domestic investment and devalues the savings of millions of working-class Americans, including retirees, stockholders, and anyone with a 401(k).
"Republicans in Congress are working to cut taxes, create more opportunity for families, and revitalize the U.S. economy," said Congressman Kustoff. "A crucial pillar of this is revoking Biden's unprecedented tax on savings and retirement accounts. I introduced the Protecting American Savers and Retirees Act in the House of Representatives to repeal this burdensome tax on buybacks. I urge my colleagues to support this critical legislation that will make it easier for Americans to invest in their future."
The Protecting American Savers and Retirees Act was endorsed by Americans for Tax Reform (ATR) and the National Taxpayers Union (NTU).
"President Biden's stock buyback tax harms millions of Americans with retirement accounts. Most Americans can't depend on the government for their retirement and instead rely on their 401(k)s, IRAs and other investments. NTU applauds Rep. Kustoff for introducing the Protect American Savers and Retirees Act, which will repeal the Biden buyback tax and remove this burden on retirement saving permanently," said Nick Johns, Senior Policy and Government Affairs Manager, National Taxpayers Union.
Background:
The Inflation Reduction Act authorized hundreds of billions of dollars in tax increases, including an untested excise tax on publicly traded U.S. companies that repurchase shares of their own company. Stock buybacks promote efficient capital markets and let businesses return value to their shareholders, giving them an opportunity to reinvest in other parts of the economy. An excise tax on stock buybacks only stifles domestic investment and economic growth while lowering the value of retirement accounts.
The Protecting American Savers and Retirees Act will protect Americans’ right to grow their wealth and become financially secure by repealing the Democrats’ reckless tax on savings and investment.
Click here for the full text of the bill.
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This is a companion discussion topic for the original entry at https://kustoff.house.gov/media/press-releases/congressman-kustoff-introduces-protecting-american-savers-and-retirees-act