Dem to reintroduce legislation to curb stock buybacks

Sen. Tammy BaldwinTammy Suzanne BaldwinKeep teachers in the classroom Cher raised million for Biden campaign at LGBTQ-themed fundraiser Democrats seek balance in backing protests, condemning violence MORE (D-Wis.) said that she is reintroducing her legislation to curb stock buybacks on Wednesday, as Democrats have criticized companies' share repurchases following the enactment of the GOP tax law.

Under the bill, corporations would no longer be able to repurchase their own shares on the open market.

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Additionally, the bill would require public companies to allow their workers to elect one-third of their board of directors.

"I believe that ending the corporate buyback binge and giving workers a seat at the table will ensure that workers share in the prosperity that they help to create," Baldwin said Tuesday.

Baldwin spoke about the reintroduction of her bill at an event Senate Democrats held Tuesday on stock buybacks.

Democrats have highlighted companies' stock buyback announcements after the passage of the GOP tax bill to argue that the law is helping wealthy shareholders rather than workers.

"We're learning more every day that the Republican tax-scam giveaway was based on fraudulent claims," said Sen. Chris Van HollenChristopher (Chris) Van HollenMid-Atlantic states sue EPA over Chesapeake Bay pollution Trump payroll-tax deferral for federal workers sparks backlash Senators urge administration to make payroll tax deferral optional for federal workers MORE (D-Md.).

Senate Minority Leader Charles SchumerChuck SchumerPelosi orders Capitol flags at half-staff to honor Ginsburg Ginsburg in statement before her death said she wished not to be replaced until next president is sworn in Democrats call for NRA Foundation to be prohibited from receiving donations from federal employees MORE (D-N.Y.), who has plans with Sen. Bernie SandersBernie SandersKenosha will be a good bellwether in 2020 Biden's fiscal program: What is the likely market impact? McConnell accuses Democrats of sowing division by 'downplaying progress' on election security MORE (I-Vt.) to offer legislation to prevent companies from buying back their own stock unless they invest in their workers, questioned how corporations could fulfill their pension obligations while also buying back their stock.

"Income distribution in America is skewed out of whack," Schumer said, adding that "we believe that not only government has a role to play, but corporate America has a role to play."

The Senate Democrats' event featured testimony from professors and workers at large companies who spoke in support of reining in stock buybacks and providing employee representation on corporate boards.

"I urge Congress to stop these malicious stock buybacks and help create jobs to benefit the community like mine," said Joe Olson, an AT&T technician and president of a local chapter of the Communications Workers of America.

Many conservatives and business groups have defended stock buybacks, arguing that they make capital investments more productive and benefit people saving for retirement. They also have said that both buybacks and business investment increased last year.