FC: Senate Republicans urge defeat of stock-option charges bill

From: Declan McCullagh (declanat_private)
Date: Tue Mar 12 2002 - 10:54:37 PST

  • Next message: Declan McCullagh: "FC: Peekabooty vaporware already raises alarums at network providers"

    The bill in question:
    T.J. Rodgers' typically-provocative op-ed opposing it:
    Sen. Carl Levin (D-Mich) press release in favor of bill:
    For Release:  Tuesday, March 12, 2002
    Contact:    Matt Raymond
            (202) 224-4121
    High Tech Task Force Urges Defeat of Stock-Options Measure, Possible Energy
    Amendment, That Would Harm Tech Community
    WASHINGTON, DC Members of the Senate Republican High Tech Task Force
    sent a letter to Senate Majority Leader Tom Daschle and Minority
    Leader Trent Lott voicing concerns that legislation which may be
    offered as an amendment to the energy bill would legislate financial
    accounting rules and have substantially harmful implications for the
    technology community and enterprises.
    In the letter, the Senators expressed concerns that S. 1940, the
    Ending the Double Standard for Stock Options Act, would require
    companies to expense stock options on their income statements and
    preclude them from taking the tax deduction they are entitled to if
    they fail to do so.  Neither SEC rules nor generally accepted
    accounting standards require companies to expense stock options.  If
    it is approved, the Senators wrote that technology companies would be
    forced to reduce the number of stock options issued to rank-and-file
    employees in order to minimize the false hit to earnings required by
    the harmfu l legislation.
    Stock options are a vital and powerful tool to motivate employees to
    improve the productivity, efficiency and overall excellence of their
    companies.  In fact, many executives at a number of companies are
    compensated solely through stock options, High Tech Task Force
    Chairman George Allen (R-VA) said.  Limits on stock options would
    seriously harm many of our most innovative companies, especially the
    technology companies that make broad use of them for their employees
    at all levels from shipping to management.
    The Senators also expressed concerns that by limiting the tax
    deduction for stock options, S. 1940 would impose a tax increase that
    would hurt small, medium-sized and large businesses and could
    ultimately hinder job growth.  Particularly troublesome to the
    technology community, the bill would discourage research and
    development by absurdly reducing the R&D tax credit for companies that
    do not expense stock options.
    Leading technology industry associations including AeA, the Business
    Software Alliance, CapNet, the Information Technology Association of
    America, the Information Technology Industry Council, the Software &
    Information Industry Association, and TechNet oppose this legislation.
    The letter was signed by High Tech Task Force Members Senators Allen,
    Wayne Allard (CO), Robert Bennett (UT), Conrad Burns (MT), John Ensign
    (NV), Orrin Hatch (UT), Gordon Smith (OR) and John Warner (VA), as
    well as Senators Larry Craig (R-ID), Tim Hutchinson (R-AR), and Don
    Nickles (R-OK).
    Communications Director, Sen. George Allen
    204 Russell Senate Office Building
    Washington, DC  20510
    Ph: 202-224-4121
    Cell: 703-969-8271
    Fax: 202-228-1573
    POLITECH -- Declan McCullagh's politics and technology mailing list
    You may redistribute this message freely if you include this notice.
    Declan McCullagh's photographs are at http://www.mccullagh.org/
    To subscribe to Politech: http://www.politechbot.com/info/subscribe.html
    This message is archived at http://www.politechbot.com/

    This archive was generated by hypermail 2b30 : Tue Mar 12 2002 - 11:33:07 PST