II 118th CONGRESS 1st Session S. 413 IN THE SENATE OF THE UNITED STATES February 14, 2023 Mr. Brown (for himself, Mr. Wyden , Mr. Schatz , Mr. Van Hollen , Mr. Reed , Mr. Luján , and Ms. Baldwin ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to increase the rate of the excise tax on the repurchase of corporate stock, and for other purposes.

1. Short title This Act may be cited as the Stock Buyback Accountability Act of 2023 . 2. Modifications to tax on repurchase of corporate stock (a) Increase in rate of tax Section 4501(a) of the Internal Revenue Code of 1986 is amended by striking 1 percent and inserting 4 percent . (b) Modification of adjustments Section 4501(c)(3) of the Internal Revenue Code of 1986 is amended— (1) by striking The amount and inserting the following: (A) In general The amount , and (2) by adding at the end the following new subparagraph: (B) Exception for stock issued to covered employees Subparagraph (A) shall not apply to so much of the fair market value of any stock issued or provided to an employee who is a covered employee (within the meaning of section 162(m)(3)). . (c) Effective date (1) Rate The amendment made by subsection (a) section shall apply to repurchases (within the meaning of section 4501(c) of the Internal Revenue Code of 1986) of stock after the date of the enactment of this Act. (2) Adjustments The amendments made by subsection (b) shall apply to stock issued or provided after the date of the enactment of this Act, in taxable years ending after such date.