U.S. Senate Banking Committee Ranking Member Pat Toomey (R-Pa.) released the following statement after Senators Sherrod Brown (D-Ohio) and Ron Wyden (D-Ore.) introduced legislation to impose a two percent tax on stock buybacks.
“I’m astonished my Democrat colleagues think it’s a good idea to punish a company’s investors—including those invested via a 401k or a pension plan—when fellow investors in the same company decide to sell their stock and take back some of their own money.
“It’s especially galling because this tax hits the company’s bottom line, punishing investors who choose to keep their money invested in the business while others choose to take their money out.
“A stock buyback is a responsible way for a company’s management team to return profit or excess cash to the firm’s owners when that capital cannot otherwise be productively deployed. This flawed tax will hurt economic growth and discourage business from going public.”
-Senate Banking GOP