2022: Fitzpatrick Voted Against Imposing A 1% Excise Tax On Corporate
Stock Buybacks. In August 2022, according to Congressional Quarterly,
Fitzpatrick voted against concurring in the Senate amendment to the
Inflation Reduction Act of 2022, which would "institute a 1 percent
excise tax on corporate stock buybacks." The vote was on a motion to
concur. The House concurred with the Senate by a vote 220-207, thus the
bill was sent to President Biden for final signage. President Biden
signed the bill and it ultimately became law. [House Vote 420,
8/12/22; Congressional
Quarterly, 8/12/22;
Congressional Actions, H.R.
5376]
The Inflation Reduction Act Established A 1% Tax On Corporations
That Buy Back Their Own Stock, Which Many Legislators Stressed Was A
"Detrimental" Practice For The Economy. According to The
Washington Post, "They also approved a 1 percent tax on companies
that buy back their own stock, a practice that many party lawmakers
see as detrimental to the economy --- to the benefit of wealthy
shareholders and executives." [The Washington Post,
8/7/22]
The Excise Tax Would Go Into Effect Until 2023, Which Raised
Predictions That Some Companies May Rush Buybacks Before 2023.
According to NPR, "Instead, a 1% excise tax on stock buybacks was
introduced, and it could bring in roughly five times as much revenue
as the carried interest measure. However, it wouldn't take effect
until next year, raising predictions of a rush of buybacks by some
companies before 2023 rolls around." [NPR,
8/7/22]