Protecting American Savers and Retirees Act

# Protecting American Savers and Retirees Act – Plain Language Summary **What the Bill Would Do** This bill would eliminate a 1% tax on corporate stock buybacks that was created as part of the Inflation Reduction Act of 2022. When large companies buy back their own stock (a practice where corporations repurchase shares from investors), they currently must pay this small tax to the federal government. The bill would remove this requirement entirely. **Who It Affects and Key Provisions** The tax applies to large, publicly-traded companies (those listed on major stock exchanges like the NYSE or NASDAQ), so this bill primarily affects big corporations and their investors.

By eliminating the tax, companies would keep more money they spend on buybacks. Supporters argue this helps retirement accounts and everyday investors who own stock in these companies, while critics contend buyback taxes help fund government programs and encourage companies to invest in workers instead of shareholder returns. **Current Status** The bill was introduced in the 119th Congress by Representative David Kustoff (R-TN) and is currently in committee, meaning it hasn't yet been voted on by the full House of Representatives.