John,

From 2018 to 2022, as many Americans struggled to make ends meet, 280 of the nation's largest corporations funneled an astonishing $4.4 trillion of profits into stock buybacks and dividend payments. That's seven times more than the $608 billion they paid in federal income taxes.[1]

In other words, for every dollar these corporations paid in taxes to fund vital public services, they spent seven dollars enriching their already wealthy investors.

The consequences of this corporate greed are far-reaching. When big companies dodge taxes, it's working Americans who pay the price. We're left with underfunded schools, crumbling infrastructure, and a widening wealth gap.

But it doesn't have to be this way. There's a solution on the table that could help level the playing field: The Stock Buyback Accountability Act. Introduced by Sens. Sherrod Brown and Ron Wyden, and proposed by President Biden, this crucial legislation would increase the tax on stock buybacks from 1% to 4%.[2]

By passing this act, we could generate an estimated $20 billion annually for critical public investments. That's money that could go towards education, healthcare, and infrastructure―the building blocks of a thriving economy that works for everyone, not just the wealthy few.

We need your voice to make this happen. Will you stand with us and demand action? Tell the Senate to pass the Stock Buyback Accountability Act now.

The clock is ticking. With each passing day, more wealth is being siphoned away from working families and into the coffers of the ultra-rich. By 2025, S&P 500 companies alone are expected to spend $1.1 trillion on buybacks.[3]

The scale of these buybacks is staggering. Take Apple, for example. The tech giant authorized a $110 billion buyback program this year, the largest ever by a U.S. company. This massive transfer of wealth to shareholders comes at a time when many workers are struggling to make ends meet.

But how did we get here? Look no further than Trump’s 2017 corporate tax cut, which slashed the corporate tax rate from 35% to 21%, while promising a trickle-down miracle. Instead, it unleashed a flood of stock buybacks. By 2022, buybacks had nearly doubled compared to pre-tax-cut levels.

In 2022, we fought for and won a 1% tax on stock buybacks, generating $3.5 billion in revenue in just the first half of that year. Now, we're pushing to increase the stock buyback tax to seriously curb this cycle of corporate greed and tax avoidance.

Help send a powerful message to the Senate: it's time to prioritize the needs of hardworking Americans over the wants of wealthy shareholders, so pass the Stock Buyback Accountability Act now.

Together, we can build an economy that works for all of us.

Thank you,

David Kass
Executive Director
Americans for Tax Fairness Action Fund

[1] Engine of Inequality: A Flood of Corporate Profits Is Enriching Wealthy Shareholders Through Stock Buybacks and Dividends, At The Expense of Workers and The Public
[2] BROWN, WYDEN INTRODUCE LEGISLATION TO INCREASE TAX ON STOCK BUYBACKS
[3] What Are Stock Buybacks? The Apple-Led Strategy Is Expected To Swell To $1 Trillion By 2025