S. 4796, Tax increase with executive carve-out. Quorum's AI analysis reads it as a trade-off: gains for some, costs for others.
S. 4796 · Mixed
What it does
This bill increases the federal excise tax on corporate stock buybacks from 1% to 4%, effective immediately upon enactment. It carves out an exception: stock issued to employees earning over $1 million per year (or to high-paid service providers) is exempt from the tax, meaning buybacks tied to executive compensation packages face a lower effective tax rate.
The analysis names U.S. Treasury (excise tax revenue) — and 2 more groups — among the beneficiaries.
The trade-off
The $1M compensation threshold for the employee exception is indexed to no inflation adjustment, meaning over time it will capture a broader swath of mid-to-senior management, progressively eroding the tax base.
Transparency scores 65%, with a medium warning level and no provisions unrelated to the bill's subject.
Who is behind it
Filed by Chuck Schumer. Cosponsored by Chris Van Hollen, Ed Markey, Elizabeth Warren and Jack Reed.