Senate Democrats Propose Taxing Stock Buybacks. What It Means for the Market.

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Senate Democrats proposed Friday a tax on corporate stock buybacks to help finance $3.5 trillion in new spending programs. The tax would be levied on buybacks that have helped propel the long bull market and enrich America’s share-compensated executives.

Under the proposal, the 2% excise tax would only apply to shares bought back and retired. It would exempt repurchased shares used to fund employee stock ownership plans. Democrats said the excise tax would bring in about $100 billion in tax revenue over 10 years.

“Instead…

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