See the full article on See It Market.
Excerpt:
- The Inflation Reduction Act includes a controversial 1% excise tax on share repurchase programs that goes into effect next year
- Wall Street Horizon’s corporate event data show a downtick in total buyback announcements this year after a 2021 surge
- Investors must carefully weigh risks and understand what they own ahead of 2023
On August 16, President Biden signed the Inflation Reduction Act (IRA) into law. With its passage comes a new 1% excise tax on corporate net share repurchases. “The buyback tax” aims to penalize companies for engaging in this type of shareholder accretive activity.
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