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John,
Corporate greed is behind the Norfolk Southern Railways train derailment in East Palestine, Ohio, which released toxic chemicals into the air, land, and water, and forced thousands of residents to leave their homes and businesses.[1]
Too many corporations like Norfolk Southern are using their profits to buy back their own stock to jack up prices, which benefit CEOs and rich shareholders, rather than invest in operations, improve safety, and raise workers’ wages.
But it’s not just Norfolk Southern Railways that is putting corporate greed ahead of workers’ rights and community safety. Some of the worst corporate actors that utilize stock buybacks are also price gougers and union busters.
Last year, ExxonMobil made a record $56 billion in profits from sky-high gas prices in the midst of a global energy crisis.[2] It then spent $15 billion of those profits, or more than one-quarter, on share repurchases. Chevron had record earnings of $35.5 billion in 2022 and announced it will be spending $75 billion more on stock buybacks.[3]
Starbucks has bought back more than $30 billion in stock over the past decade[4] while simultaneously refusing to negotiate with unionized workers and denying workers benefits.[5]
Home Depot has bought back $74 billion worth of stock over the past decade[4] while resisting worker efforts to organize, including squashing a union vote in Northeast Philadelphia.[6]
And Apple has bought back over $400 billion in stock over the last five years―over $95 billion in a recent 12-month period.[7] Now, the National Labor Relations Board is accusing Apple of violating the National Labor Relations Act, interfering with workers’ rights to organize for fair wages and benefits.[8]
Take action to hold greedy, price gouging, union-busting corporations accountable. Send a letter to your senators today and urge them to become co-sponsors of the new Stock Buyback Accountability Act.
This bill, introduced by Sens. Sherrod Brown (D-OH) and Ron Wyden (D-OR), would place a 4% tax on stock buybacks to discourage corporations from inflating their stock price, and to encourage corporations to invest in workers, not wealthy CEOs and shareholders.
Send a message to your senators today!
Thank you for all that you do to create an economy that works for everyone, not just millionaires, billionaires, and greedy corporations.
Sarah Christopherson
Legislative and Policy Director
Americans for Tax Fairness Action Fund
[1] “‘It’s Going to End Up Like Boeing’: How Freight Rail Is Courting Catastrophe,” Motherboard Tech by Vice, Mar. 22, 2021
[2] “‘Outrageous’: Big oil made almost $200 billion in 2022 as world faced energy crisis. Here's the breakdown.,” USA Today, Feb. 10, 2023
[3] “Chevron is catching heat for tripling its stock buyback to $75 billion as soaring energy prices led to record profits,” Markets Insider, Jan. 26, 2023
[4] “S&P 500 Buybacks Set Quarterly and Annual Record,” S&P Global, Mar. 15, 2022
[5] “Starbucks’ Aggressive Union-Busting Is a New Model for American Corporations,” Slate, Nov. 3, 2022
[6] “Home Depot Workers in North Philly allege 'surveillance,' other union-busting tactics ahead of election,” The Philadelphia Inquirer, Oct. 19, 2022
[7] “S&P 500 Buybacks Decline 4.0% but Energy Buybacks increase 64.5%; Proforma Buyback Tax Would Have Reduced Operating Earnings by 0.46%,” Cision PR Newswire, Dec. 19, 2022
[8] “Regulators Find Apple’s Secrecy Violates Workers’ Rights,” New York Times, Jan. 31, 2023
-- Frank's email --
John,
The railroad derailment in East Palestine, Ohio and the resulting toxic chemical spill that has displaced thousands of residents was preventable, if rail carrier Norfolk Southern had invested in workers and safety rather than hoarding excess corporate profits.
One Norfolk Southern employee told CBS News, “The workers are exhausted, times for car inspections have been drastically cut, and there are no regulations on the size of these trains.”[1]
For years, experts have warned that “draconian cost-cutting” by virtually every major railroad company would result in these types of derailments.[2] And yet, just last year, Norfolk Southern announced a $10 billion stock buyback plan to enrich its executives and shareholders rather than investing in critical operations.[3] One journalist called the catastrophe “a predictable consequence of Wall Street-backed policy decisions that have hollowed out the industry’s workforce, pushed remaining employees to chronic exhaustion and sacrificed safety for profits.”[4]
To hold greedy corporations accountable, Senators Sherrod Brown (D-OH) and Ron Wyden (D-OR) have introduced the Stock Buyback Accountability Act of 2023. It would place a 4% tax on stock buybacks to discourage corporations from inflating their stock price and to encourage corporations to invest in workers, not wealthy CEOs and shareholders.[5]
Stock buybacks mostly enrich top corporate executives and other wealthy shareholders. That’s because about 90% of all corporate stock is owned by the richest 10% of Americans; over half is owned by the top 1%.[6] Moreover, the boost in share prices caused by stock buybacks are not taxed unless the investor sells the underlying shares. Often the shares are never sold and the gain is never taxed.[7]
Click here to write to your U.S. senators and urge them to become co-sponsors of the Stock Buyback Accountability Act today!
Norfolk Southern isn’t the only corporation engaging in reckless stock buybacks. In fact, in the five years since the passage of the Trump-GOP tax cuts, corporations have spent $4.2 trillion of their new-found wealth on stock buybacks―money that could have been used to raise workers’ wages, invest in workplace protections and public safety, and lower costs for consumers.[8]
Last year ExxonMobil made a record $56 billion in profits from sky-high gas prices in the midst of a global energy crisis; it then spent $15 billion of those profits, or more than one-quarter, on share repurchases.[9] Chevron had record earnings of $35.5 billion in 2022 and announced it will be spending $75 billion more on stock buybacks.[10]
Send a message to your senators today and urge them to become co-sponsors of the Stock Buyback Accountability Act to hold greedy corporations accountable.
Together, we’re standing up for workers and our communities and fighting back against corporate greed.
Thank you,
Frank Clemente
Executive Director
Americans for Tax Fairness
[1] “Excess size caused train to break down in days before it derailed in Ohio, employees say,” CBS News, Feb. 15, 2023
[2] “‘It’s Going to End Up Like Boeing’: How Freight Rail Is Courting Catastrophe,” Motherboard Tech by Vice, Mar. 22, 2021
[3] “Norfolk Southern Announces New $10 Billion Stock Repurchase Program,” Norfolk Southern Press Release, Mar. 29, 2022
[4] “Rail Workers Blame Fiery Train Crash in Ohio on Wall Street Profit-Seeking,” Common Dreams, Feb. 7, 2023
[5] “Brown, Wyden Introduce Legislation to Increase Tax on Stock Buybacks,” Sen. Sherrod Brown, Feb. 14, 2023
[6] “Distribution of Household Wealth in the U.S. since 1989,” The Federal Reserve
[7] “Buy, Borrow, Die: How Rich Americans Live Off Their Paper Wealth,” The Wall Street Journal, Jul. 13, 2021
[8] “Stock Buybacks 2010 through 2022,” Americans for Tax Fairness
[9] “‘Outrageous’: Big oil made almost $200 billion in 2022 as world faced energy crisis. Here's the breakdown.,” USA Today, Feb. 10, 2023
[10] “Chevron is catching heat for tripling its stock buyback to $75 billion as soaring energy prices led to record profits,” Markets Insider, Jan. 26, 2023
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