The U.S. Congressional Research Services (CRS) has published a report dated 25 January 2023 on the new 1% corporate stock repurchase excise tax introduced by the Inflation Reduction Act of 2022. The report provides an explanation of stock repurchases, the application of the 1% tax, economic issues relating to a tax on stock repurchases, and regulatory issues. The report summary is as follows:
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The 1% Excise Tax on Stock Repurchases (Buybacks)
The law commonly known as the Inflation Re…