John Edwards 2004 On The Issues
John Edwards' Plan
To Return America's Values To Corporate America
The vast majority of businesses and business leaders still believe in
America’s values. But too many executives have forgotten those values.
That is why John Edwards has proposed a Worker and Shareholder Bill of
Rights.
At Enron, Tyco, and WorldCom, a handful of managers enriched themselves
while working people lost everything. CEO salaries have increased even
as ordinary working people have seen their paychecks decline.
At American Airlines, a CEO was demanding that pilots and flight
attendants see their pensions cut at the very moment he was putting away
$41 million to protect executive pensions against bankruptcy.
John Edwards believes we must restore corporate responsibility to
restore confidence in our economy.
John Edwards has proposed a Worker and Shareholder Bill of Rights to:
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Take on insiders to
restore honest accounting.
-
Rein in
outrageous CEO pay.
-
Empower owners to
hold managers accountable for results.
-
Restore pension
parity to help regular workers.
-
Shut down tax
gimmicks.
Take On Insiders To Restore Honest
Accounting
Expense Stock Options
Stock options are a key tool, but they are not free. The failure to
account for options played an important role in scandals like Enron. In
1994, Congress blocked a plan to require expensing of options. Edwards
believes expensing of options should be required.
Better Disclose Pension Costs
Current rules allow companies to claim large earnings on their pension
funds, even if those funds are losing billions. This can keep investors
and employees in the dark about the health of companies and pensions.
Edwards calls for new rules to give investors and workers accurate,
clear information about pension costs.
Rein In Outrageous Executive Pay
Eliminate Tax Breaks
Building on current law, Edwards will require that tax deductions for
high executive pay be available only when that pay truly leads to
productivity gains and sound growth over the long haul.
Pass a CEO Right-to-Know Law
Edwards believes companies should be required to tell shareholders and
workers in plain English what they pay top executives and how that pay
compares with the pay of ordinary workers.
Empower Owners To Hold Managers
Accountable
Empower Shareholders
Edwards will allow shareholders to nominate board members without waging
a costly proxy fight.
Stand Up for Investors
Mutual funds and pension funds have a duty to protect their investors'
interest, but many funds have stood idly by while misconduct occurred.
Edwards will strengthen enforcement of this obligation and will also
require pension plans to disclose how they cast their proxy votes.
Put the "Public" Back Into IPOs
Some Wall Street bankers have been able to game initial public
offerings, selling underpriced shares to friends and potential clients.
Edwards will limit sales to insiders and their families.
Restore Pension Parity To Help
Regular Workers
Restore Pension Parity
At a time when CEOs are enhancing their own pensions and cutting their
workers' pensions, Edwards will strengthen the principle of fairness in
current pension law. He will eliminate all tax breaks for executive
pensions that are disproportionately large compared to rank-and-file
pensions.
Protect Older Workers
Companies are converting pensions from guaranteed monthly payments to
"cash balance" plans that accumulate earnings. These conversions can cut
older workers' pensions by as much as 50 percent. Edwards will protect
the oldest and longest-tenured workers from pension cuts due to
conversions.
End "Golden Getaways"
Executives shouldn't be walking away with millions while companies are
going bankrupt. Edwards introduced legislation to keep executives from
safeguarding their own pensions in bankruptcy-proof trust funds.
Eliminate Pension-Based Tax Abuses
Edwards will enforce tax laws that require executive pensions to remain
outside the beneficiaries' control and at risk of loss in order to avoid
immediate taxation.
Shut Down Corporate Tax Abuses
Fully Disclose Book-Tax Disparities
Edwards will require corporations to disclose the profits they report to
the IRS and explain why they differ from profits reported on balance
sheets. This disclosure will make it far harder for companies to hide
income in undisclosed shelters.
Close the "Janitors' Insurance" Loophole
Today, corporations buy insurance on rank-and-file employees and get
huge tax breaks�even though the employees and their families never see
the benefits. Edwards will close this abusive tax loophole.
Close the Bermuda Loophole
Edwards will not allow U.S. companies to avoid taxes by setting up
foreign "headquarters" that are little more than mailboxes.
Stop Sham Tax Transactions
Edwards will remove tax benefits gained from transactions that have no
genuine business purpose other than tax avoidance or evasion.
Crack Down on Abusive Tax Lawyering
Today, some tax lawyers make millions through flimsy letters telling
clients how to shelter their income. Edwards will stop these abuses.
Increase Penalties for Abuses
Abuse must have consequences. Edwards believes that we need stricter
penalties for taxpayers who fail to properly disclose tax shelter
transactions and underpay their taxes due to an abusive tax shelter.
Source: John Edwards for President 2004 Web Site
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