Contact Congress about S. 413: Stock Buyback Accountability Act of 2023

Some companies would pay a higher federal tax when they buy back their own stock. The bill also blocks a tax offset for stock given to certain top-paid executives.

Modern Action explains legislation in plain English, helps you choose whether to support, oppose, or ask for changes, and drafts a message tied to the bill, your stance, and the elected officials who can act on it.

Stock Buyback Accountability Act of 2023 is a Senate bill in Congress.

Who this affects: This bill mainly affects companies that buy back their own stock. It also affects certain top-paid employees who receive stock, because their stock awards would no longer help reduce the company's buyback tax. Investors could feel indirect effects if companies change how they return cash to shareholders. Workers could also be affected if companies shift money toward or away from wages, hiring, or business investment.

Why this matters: This bill matters because it could change how companies choose to spend extra cash. A higher tax may make stock buybacks less attractive. Companies might still do buybacks and pay more, or they might use more money for dividends, investment, wages, or other needs. The bill also targets one narrow tax issue tied to executive stock pay. Its larger effect on workers, investors, and the economy would depend on how companies respond.

Key provisions in S. 413

• The federal tax on certain company stock buybacks would rise from 1% to 4%. The bill makes that change in the part of the tax code that sets the buyback tax rate.
• The bill keeps the basic adjustment rules for calculating the buyback tax. It reorganizes that part of the law and adds one new limit.
• Companies could not use the employee-stock adjustment for stock issued to covered employees. Covered employees generally means certain top-paid executives under the tax code.
• Stock given to covered employees could not lower the amount hit by the buyback tax. The bill uses the stock's fair market value, meaning its normal market price, for that calculation.
• The 4% tax rate would apply only to stock buybacks after the bill becomes law.

How Modern Action helps you take action on S. 413

You do not have to start with a blank letter. Modern Action turns the bill, your position, and the relevant congressional context into a message you can edit and send. The goal is to make contacting Congress clear, specific, and useful without forcing you to parse bill text or figure out the right office on your own.

Questions people ask about S. 413

What is S. 413?

Some companies would pay a higher federal tax when they buy back their own stock. The bill also blocks a tax offset for stock given to certain top-paid executives.

How do I support or oppose S. 413?

Choose support, oppose, or ask for changes on Modern Action. The action flow drafts the message for you and keeps the wording tied to this bill.

Who should I contact about S. 413?

Modern Action uses your location to route the action to the congressional offices relevant to the bill and your representation.

Can Modern Action explain S. 413 before I act?

Yes. Modern Action gives you a plain-English summary, current status, and action context before you send anything.