Photo: President Joe Biden U.S. President Joe Biden speaks during an event in the Rose Garden of the White House on September 28, 2022.

A new tax created by Democrats to slow the record pace of stock buybacks has been largely shrugged off by corporations, which see the 1 percent excise levy as a minor cost of doing business.

The tax on publicly listed corporations—created in President Joe Biden’s signature tax and climate plan and set to go into effect next year—makes it slightly more costly for companies to repurchase their shares. But the desire to use free cash to buy back shares appears to be stronger than any deterrent created by the tax.

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