SPONSORED:

Dem to reintroduce legislation to curb stock buybacks

Sen. Tammy BaldwinTammy Suzanne BaldwinSenate Democrats push Biden over raising refugee cap House Dems to unveil drug pricing measure ahead of Biden package World passes 3 million coronavirus deaths 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 HollenIs America slipping to autocracy? Trade representative says policy must protect key industries Senate Democrats push Biden over raising refugee cap MORE (D-Md.).

Senate Minority Leader Charles SchumerChuck SchumerBiden to meet with 6 GOP senators next week The Hill's Morning Report - Presented by Emergent BioSolutions - Upbeat jobs data, relaxed COVID-19 restrictions offer rosier US picture How to fast-track climate action? EPA cutting super pollutant HFCs MORE (D-N.Y.), who has plans with Sen. Bernie SandersBernie SandersGOP is consumed by Trump conspiracy theories Manchin on collision course with Warren, Sanders Sanders on Cheney drama: GOP is an 'anti-democratic cult' 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.