Senators Elizabeth Warren of Massachusetts and Ron Wyden of Oregon introduced legislation on Tuesday to raise the federal tax on corporate stock repurchases from 1% to 4%.. The move seeks to capture an estimated $240 billion over the next decade and curb a pratice that,according to a new report, has siphoned $4.8 trillion into the hands of a handful of shareholders since 2017.

Four‑percent levy could net $240 billion , analysts say

The proposed bill would triple the current buy‑back tax, a change that economists cited in the source report estimate will generate roughly $240 billion in revenue over ten years. According to the analysis by Americans for Tax Fairness, the additional revenue would come from corporations that have spent $4.8 trillion on repurchases since the 2017 tax overhaul.

Tech titans Apple , Oracle, Nvidia and Visa account for $2 trillion of buybacks

The same report highlights that the top four firms—Apple, Oracle, Nvidia and Visa—are responsible for more than $2 trillion of the total buyback spending. As the source notes, these companies alone illustrate how the benefits of the 2017 tax cuts have been concentrated among a few global behemoths rather than the broader workforce.

Warren calls the practice “shameful” amid rising cost of living

Senator Warren framed the legislation as a moral imperative, saying it is “shameful” that executives and shareholders reap massive profits while ordinary families grapple with higher grocery, gasoline and rent prices. According to the source, she argues that the tax increase would force corporations to redirect capital toward wages, research and development, or other productive uses.

Wyden warns current rules reward corporate greed over growth

Senator Ron Wyden, the leading Democrat on the Senate Finance Committee, echoed Warren’s concerns, noting that the existing tax code lets the rise in stock prices from buybackks go untaxed unless shares are sold . this loophole, the report says, benefits the top 5% of households, who own about 70% of all stocks, allowing them to grow wealth without the tax burden faced by wage earners.

Who will fill the $240 billion gap if the tax passes?

The legislation leaves open the question of how the new revenue will be allocated. While the bill’s sponsors emphasize infrastructure and workforce investment, the source does not detail specific spending plans, and it remains unclear whether the funds will be earmarked for any particular program or simply added to the general budget.