Congressman Kustoff Reintroduces Legislation to Protect Retirement Accounts of Americans

WASHINGTON, D.C. — Today, Congressman David Kustoff (TN-08) reintroduced the Protecting American Savers and Retirees Act in the House of Representatives. This bill will repeal Democrats' unprecedented excise tax on stock buybacks authorized in their partisan, Inflation Reduction Act. 

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

"I am proud to reintroduce this important legislation to protect taxpayers from Democrats' tax on their saving and investment," said Congressman Kustoff. "As families and businesses grapple with high inflation and a struggling economy, the last thing they need is higher taxes that make it harder to invest in their futures. In House Republicans' Commitment to America, we promised to work towards creating an economy that's strong. This legislation is an important part of that effort and I urge my colleagues in the House of Representatives to support it." 

“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.”

"The stock buyback tax enacted in the Inflation Reduction Act will have negative consequences for the American economy, and will slow innovation and job creation at a time of economic uncertainty. Disincentivizing stock buybacks harms millions of Americans who are shareholders in publicly-traded companies, and who stake their retirement and life savings on the performance of these investments. NTU is proud to support Representative Kustoff’s legislation to repeal the stock buyback tax," said Alex Milliken, Policy and Government Affairs Manager, National Taxpayers Union (NTU).

"Democrats put Americans' retirement savings in the crosshairs to further even more reckless spending in their misnamed Inflation Reduction Act. Without Congressional action, any individual with a 401(k), IRA or pension plan will see their retirement savings hit by Democrats' stock buyback tax. This tax hike would stifle U.S. employers and put Americans at a competitive disadvantage vs. Communist China, which does not have a buyback tax. Rep. Kustoff's legislation will repeal this harmful tax increase, protecting the investments of American taxpayers and retirees. Americans for Tax Reform applauds Rep. Kustoff for his leadership on this effort," said Grover Norquist, President of Americans for Tax Reform (ATR).

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 of Commerce, Business Roundtable and SPAC Association.

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

Click here for a full text of the bill.

###