Section 1 Short title
This Act may be cited as the “Stock Buyback Accountability Act of 2023”.
Stock Buyback Accountability Act of 2023
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.
Sec. 2 Modifications to tax on repurchase of corporate stock
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”.
by striking “The amount” and inserting the following:
“(A) In general—The amount”
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)).”
Effective date—
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.
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.