Goldman Sachs estimates there will be a record $1 trillion worth of corporate stock buybacks in 2025.
The Biden administration wants to quadruple taxes on corporate stock buybacks.
Ahead of President Joe Biden’s State of the Union address, the White House put out a fact sheet detailing some of the initiatives that will be discussed.
One of those initiatives includes «quadrupling the stock buyback tax» to 4% from 1%.
«President Biden would quadruple the stock buyback tax from one percent to four percent to address the continued tax advantage for buybacks and encourage corporations to invest in productivity and the broader economy rather than windfalls for investors,» the White House said.
The first-ever tax on stock buybacks went into effect in 2023, and is estimated to have raised about $8 billion in tax revenues in its first year.
