Congressman Kustoff Introduces Legislation to Protect Retirement Accounts of Americans

Press Release

Today, Congressman David Kustoff (TN-08) introduced the Protecting American Savers and Retirees Act in the House of Representatives. This bill will repeal the unprecedented excise tax on stock buybacks included in President Joe Biden's reckless spending package.

Specifically, the Protecting American Savers and Retirees Act will repeal the one percent excise tax on stock buybacks set to go into effect on January 1, 2023. This $74 billion tax will devalue the savings for millions of working-class Americans, such as retirees, stockholders, and anyone with a 401(k).

"As Americans across the country grapple with a recession, the last thing they need is more taxes from the Biden Administration," said Congressman Kustoff. "I introduced this legislation today to repeal this reckless tax on saving and investment. Every family deserves the opportunity to invest in their future and live the American dream. I urge my colleagues to support this critical legislation and protect the retirement of millions of hardworking Americans."

"The U.S. Chamber welcomes legislation introduced by Representative Kustoff that would repeal the misguided tax on stock buybacks that was recently included in the Inflation Reduction Act," said Tom Quaadman, Executive Vice President, U.S. Chamber of Commerce. "The excise tax on stock buybacks will distort the efficient movement of capital to where it can be put to best use and diminish the value of Americans' retirement savings."

"Rescinding the stock buyback tax in the Inflation Reduction Act will protect taxpayers and strengthen the economy. The value gained from stock buybacks allows for investment into the startup economy and fuels job growth. Disincentivizing stock buybacks will provide little value to the individual taxpayer and will harm the millions of Americans who are shareholders in publicly-traded companies. NTU thanks Congressman Kustoff for his leadership in efforts to repeal the stock buyback tax," said Alex Milliken, Policy and Government Affairs Manager, National Taxpayers Union.

Background:
The Inflation Reduction Act authorized hundreds of billions of dollars in tax increases, including an untested excise tax on publicly traded U.S. companies that repurchase shares of their own company. Stock buybacks promote efficient capital markets and let businesses return value to their shareholders, giving them an opportunity to reinvest in other parts of the economy. An excise tax on stock buybacks will stifle domestic investment and economic growth while lowering the value of retirement accounts.

The Protecting American Savers and Retirees Act will protect Americans' right to grow their wealth and become financially secure by repealing the Democrats' reckless tax on savings and investment.

This bill is supported by the Americans for Tax Reform, National Taxpayers Union, U.S. Chamber, and Business Roundtable.

This bill was originally cosponsored by Reps. Darin LaHood (R-IL) and David Schweikert (R-AZ). 

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