08/05/2022 | Press release | Distributed by Public on 08/05/2022 18:18
After the House passed SECURE 2.0 in a major bipartisan win for Americans saving for retirement, Democrats are now offering anew taxthat will have the harshest effects on seniors and other savers.
Democrats are threatening companies that return value to retirees or to 401(k) plans or to pension plans with a punitive tax. Their unvetted stock buybacks tax is a crippling tax that reduces retirement security for American seniors.
Key Background:
Unvetted stock buybacks tax will reduce retirement security for seniors.
Most corporate stocks are held by retirement plans.
Democrats' stock buyback tax puts America at a disadvantage to China.
Companies use stock buybacks to supplement investing in capital.
As the Tax Foundationpoints out: "A large body of evidence supports the idea that companies generally only consider stock buybacks when they have exhausted their investment opportunities and met their other obligations, meaning it is residual cash flow that is used for buybacks. In fact, stock buybacks can supplement capital investments, as they can help reallocate capital from old, established firms to new and innovative firms."