Vote Yes on the Stock Buyback Accountability Act

As your constituent. I’m asking you to vote in favor of the Stock Buyback Accountability Act. This bill would increase the federal excise tax on stock buybacks from 1% to 4% and close a loophole that lets corporations reduce the buyback tax by issuing stock compensation to executives. After the 2017 corporate tax cut, Republicans promised companies would raise wages, hire more workers, and invest in the economy. Instead, buybacks surged. Recent trends show the same pattern: buybacks have reached record levels, with S&P 500 repurchases rising dramatically and crossing $1 trillion for the first time. When companies prioritize buying back their own shares instead of investing in workers and long-term growth, it undermines broad-based prosperity. The Inflation Reduction Act already created a 1% buyback excise tax, and evidence shows buybacks still retain a tax advantage relative to dividends. Quadrupling the excise tax is designed to reduce that advantage—so companies have fewer incentives to reward shareholders and executives through repurchases rather than through other productive uses. Supporters also argue the bill targets executive-focused tax planning. Under current rules, companies can lower the effective excise tax base through “netting/offset” mechanics tied to stock compensation. By excluding certain executive stock from the offset calculation, the bill ensures that buybacks intended to benefit top executives are not subsidized. To be clear, the case for this bill is not that buybacks are always bad, but that corporate America has been using tax advantages to shift value to shareholders—often while families feel cost pressures. At the same time, research on higher buyback excise tax rates indicates substantial additional revenue potential, which can help strengthen the fiscal foundation while leveling incentives. Please support the Stock Buyback Accountability Act. A fair tax system should discourage buyback “bonanzas,” close executive loopholes, and encourage investment that benefits workers and the long-term health of companies.