To make up for the lost revenue from the corporate minimum tax exemptions and dropping the carried interest provision, Democrats added a 1% excise tax on stock buybacks, which Schumer said would raise $74 billion over 10 years.
“I hate stock buybacks. I think they’re one of the most self-serving things that corporate America does,” Schumer said. “Instead of investing in workers and in training and in research and in equipment, they just simply ... artificially raise the stock price by just reducing the number of shares. They’re despicable.”
The Chamber of Commerce opposes the stock buyback tax. Bradley said it “will only distort the efficient movement of capital to where it can be put to best use and will diminish the value of Americans’ retirement savings.”
Despite the prospect of tax increases, some companies are calling on Congress to quickly pass Democrats’ bill because of investments it would make in clean energy. About 40 companies, including U.S. divisions of European oil giants BP Plc and Shell Plc; automaker Ford Motor Co.; apparel companies VF Corp. and Levi Strauss and Co.; and ride-booking app Lyft Inc., signed onto a statement Friday backing the bill.
“This package promises to unleash American innovation and ingenuity — and to foster the creation of millions of jobs as a result,” the statement said.
In addition to the tax changes to the bill, Schumer confirmed there would be a climate addition on drought resilience that Sinema pushed for, but he said the details were still being worked out.
Schumer did not mention potential changes being made based on feedback from Senate Parliamentarian Elizabeth MacDonough about what complies with the “Byrd rule,” which mandates reconciliation provisions have more than a “merely incidental” impact on spending or revenues. But Schumer said MacDonough and her team were working all day Friday, scrubbing the bill “to make sure the Senate’s ready to act.”
Later on Friday, a trio of Democratic senators up for reelection this year in drought-stricken Western states — Mark Kelly of Arizona, Catherine Cortez Masto of Nevada and Michael Bennet of Colorado — announced that $4 billion for the Bureau of Reclamation to combat drought would be added to the package.