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Home / Business / Chuck Schumer and Bernie Sanders call to limit the repurchase of the company's shares

Chuck Schumer and Bernie Sanders call to limit the repurchase of the company's shares



The Senate Liberal proposes legislation that prevents companies from buying their own shares, unless they first pay employees at least $ 15 per hour and offer paid timeouts and health benefits.

billion was repurchased by major corporations after a corporation tax shot pushed through Washington late 2017 leaving companies with much extra money to spend. But instead of increasing the profitability of employees or investing in equipment, companies used the most money to buy their shares. And some big companies buy back billions of dollars of shares while announcing layoffs and factory and history closures, the senators wrote.

For example, Walmart announced a $ 20 billion buyback while lying on hundreds and closed Sam's Club stores. The column quotes a Roosevelt Institute analysis that the dealer could have used the money instead of increasing hourly wages to $ 15.

Harley-Davidson buys back 15 million shares while closing a factory in Kansas City, Mo., Wells Fargo used the billi Americans should be furious that these profitable companies are laying off workers while spending expenses. billions of dollars to increase value creation to further enrich the rich few, "said the senators.

Kevin Hassett, president of President Donald Trump's advice for financial advisers, lambasted the proposal.

" I want some economist to go talk with these guys about how the buybacks work, "Hassett said on Monday at CNBC's" Squawk Box "." It's very disappointing that I see again and again that the Democrats are really pursuing financially illiterates, just because they think they sound good politically. "[19659003] It is not the first time a ban on the repurchase of company shares has been driven. Last year, beds Tammy Baldwin, D-Wis., Attempted to ban stock purchases as open market purchases, arguing that they have contributed to financial inequality and derived resources from workers.

In June last year, more than a thousand lawmakers, including Schumer and Baldwin, wrote to the Securities and Exchange Commission leader Jay Clayton and urged him to open public comments on the stock purchase rules, as they said. had not been updated for over decades, quoting a study by the Brookings Institute that existed from 2004 to 2014, and the largest US companies spent 51 percent of their profit on buyback.

Sanders, I-Vt. the democratic presidential election

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