Dem to reintroduce legislation to curb stock buybacks

Sen. Tammy BaldwinTammy Suzanne BaldwinThe Hill's Morning Report — Mueller Time: Dems, GOP ready questions for high-stakes testimony Overnight Health Care — Presented by PCMA — Judge upholds Trump expansion of non-ObamaCare plans | Williamson says she believes in vaccines | House committee to hold oversight hearing on Juul The Hill's Morning Report: Trump walks back from 'send her back' chants 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.

ADVERTISEMENT

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 HollenOvernight Energy: USDA expected to lose two-thirds of research staff in move west | EPA hails Trump's work on reducing air pollution | Agency eyes reducing inspections of nuclear reactors USDA expected to lose two-thirds of research staff in move to Kansas City Lawmakers pay tribute to late Justice Stevens MORE (D-Md.).

Senate Minority Leader Charles SchumerCharles (Chuck) Ellis SchumerTrump says he will meet with Schumer 'ASAP' after border visit Dem senator describes 'overcrowded quarters,' 'harsh odor' at border facilities Top Democrats demand security assessment of Trump properties MORE (D-N.Y.), who has plans with Sen. Bernie SandersBernie Sanders'Medicare for All': The hype v. Maryland's reality Biden says he supports paying campaign staff minimum wage Biden's lead narrows in early voting states: poll 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.