PoliticsFriday 08.05.22

Senate Majority Leader Schumer touts Democrats' proposed new excise tax on stock-buybacks.

SCHUMER: I believe strongly in the carried interest loophole, I have voted for it. I've pushed for that pushed for it to be in this bill.

Senator Sinema said she would not vote for the bill, not even move to proceed, unless we took it out, so we had no choice. The only other real change here is there is in the 313 billion dollars that we gained from closing corporate tax loopholes, the corporate, so-called, minimum tax, a piece was taken out but 258 billion of that remains. So the vast majority remains.

But what we added is something that excites me and I think excites all Democrats and particularly progressives, we're adding in an excise tax on stock buybacks that will bring in 74 billion dollars.

By way of contrast, the carried interest loophole as it was phrased and we took the exact language the house had, we lost was a 14 billion dollar income. This is 74 billion, five times. I hate stock BuyBacks. I think they are one of the most self-serving things that Corporate America does. Instead of investing in workers, and in training, and in research and in equipment, they simply, they don't do a thing to make their company better and they artificially raise, the stock price by just reducing the number of shares. They’re despicable. I'd like to abolish them, in fact, Sanders and I have legislation to do that.

But to put this excise tax on when I spoke to a good number of progressive legislators, they were excited about it.

Recount Wire