The sweeping climate, health care and tax bill that Senate Democrats passed Sunday includes one of the biggest tax hikes in decades, including a new levy for corporations that repurchase their own stock.
The Inflation Reduction Act of 2022, which passed along party lines with Democrats employing the budget reconciliation process, would raise an estimated $739 billion over the next decade, with the revenues going toward initiatives designed to combat climate change and curb pharmaceutical prices, as well as efforts to reduce the nation’s $30 trillion debt.
It includes about $433 billion in new spending, while roughly $300 billion of the new revenue raised would go toward paying down the nation’s deficit.
Some of the main revenue raisers stem from new levies on wealthy businesses, including a 1% excise tax on corporate stock repurchases that is poised to take effect in 2023. Democrats, who estimated this new levy will raise about $74 billion over the next decade, are hoping to slow companies’ tendency to buy back their own stock from investors with the tax.
www.foxbusiness.com/economy/democrats-add-stock-buyback-tax-inflation-reduction-act-what-know