Major Questions Raised by New US Excise Tax on Stock Buybacks

Journal
Martin, H.
United States
Finance and Capital Markets (formerly Derivatives & Financial Instruments) 2022 (Volume 23), No. 4
PriceUSD 45

The United States has adopted a new 1% excise tax on the fair market value of stock repurchased by certain publicly traded corporations during a tax year. The statute has been drafted broadly, with the result that the tax may apply more widely than intended.