This legislative proposal significantly increases the excise tax imposed on corporate stock repurchases. Specifically, it amends the Internal Revenue Code of 1986 to raise the tax rate from the current 1 percent to 4 percent , making stock buybacks substantially more expensive for corporations. Furthermore, the bill introduces modifications to how the tax is calculated, particularly concerning adjustments for stock issued by the corporation. It establishes an exception , stipulating that the fair market value of stock issued to certain highly compensated individuals cannot be used to reduce the amount of stock repurchased for tax purposes. This includes stock provided to: employees defined as covered or specified covered employees (typically senior executives), or other persons receiving over $1,000,000 in annual remuneration for services. These adjustments aim to prevent companies from offsetting their stock buyback tax obligations by issuing stock to their top earners. The increased tax rate applies to repurchases made after the bill's enactment, while the adjustments for stock issued to specific persons take effect for taxable years ending more than 90 days after enactment.