Microsoft’s latest purchase scheme comes after two senior Democratic senators proposed a 2% tax on corporate stock buybacks as part of a bid to help fund a $3.5 trillion U.S. budget bill.

The potential tax, announced on Friday, was released by Senate Finance Committee Chairman Ron Wyden of Oregon and Senate Banking Committee Chairman Sherrod Brown of Ohio, in a bid to boost company investment and reduce tax avoidance.

Although Microsoft did not say in its statement Tuesday how it would fund its buyback, it’s currently sitting on a cash pile of more than $130 billion that it has used to fund acquisitions and to boost dividends and buybacks.

The current buyback has no expiration date, and may be terminated at any time. Microsoft also increased its quarterly dividend by 6 cents to 62 cents a share. Its shares were up 1% as the market opened in New York on Wednesday.

Microsoft Plans to Buy Back Up to $60 Billion in Stock (yahoo.com)