The Stock Buyback Accountability Act of 2026 increases the federal excise tax on corporate stock repurchases from 1 percent to 4 percent, effective immediately upon passage. The bill modifies existing tax rules to prevent large corporations from avoiding the tax by issuing new stock to highly compensated executives earning over $1 million annually. The legislation affects publicly traded companies that repurchase their own stock, a common practice where corporations buy back shares to boost stock prices and return profits to investors. The higher tax rate applies to all stock buybacks after the bill's enactment date, with a pro-rata calculation for any tax year that straddles the effective date. The bill was introduced by Senator Schumer and several colleagues in June 2026, aiming to increase revenue from major corporations while discouraging buybacks that critics argue prioritize shareholder returns over worker wages and business investment.
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