Biden To Crack Whip On Meta, Exxon, Others For Enriching Wall Street Using A Special Tactic - Meta Platfo

President Joe Biden is set to make his third State of the Union address Tuesday night at 9 p.m. ET according to the White House's official website. One focus of the speech will be his plans to make it harder for corporations to buy back their own stocks, according to a statement the White House released Monday.

Biden introduced a 1% stock buyback tax as part of his Inflation Reduction Act passed last year, according to legislation passed through Congress, but critics argued the 1% was not high enough to be a deterrent for companies that wantedto purchase shares of their companies. Biden is expected to propose quadrupling the tax to 4%.

What Are Stock Buybacks?

Stock buybacks are when a company uses some of its revenue to purchase shares of its own company. This lowers the supply of shares on the available market, thus elevating the price according to former Secretary of Labor Robert Reich.

Why Is Biden Going After Them Now?

Last year, American companies amassed more than $1.26 trillion worth of stock buybacks in 2022, an all-time high and up 3% from the previous year, according to Birinyi Partners, via a Bloomberg Report.