Rule to disclose payments to foreign governments nullified

One provision of the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act would require drilling and mining companies to disclose payments they make to foreign governments - an attempt to fight corruption in countries that use repressive work conditions to mostly enrich their rulers.

Former Exxon CEO Rex Tillerson personally lobbied against the requirement, but it nevertheless was included in the final bill.

It took the Securities and Exchange Commission (SEC) until June, 2016 to enact a regulation implementing that section of the law.

Tillerson now is Secretary of State.

In one his first bills signed since taking office, President Trump has signed a bill to prevent the SEC requirement from taking effect.

It was passed by Congress under the Congressional Review Act, meaning it was not subject to a filibuster in the Senate.

For more, read the Politico story.

Click here for more information on the bill to revoke the rule.

SEC considering making companies disclose political donations

The Securities and Exchange Commission (SEC) is being asked to require publicly traded corporations to disclose their political donations.

The proposed rule would allow shareholders of a company to evaluate that aspect of the company's operations - similar to the SEC rule that requires the disclosure of executive compensation.

The rule would not apply to donations by individuals or private corporations.

Supporters of the proposed rule include Sen. Robert Menendez and Rep. Chris Van Hollen, as well as almost half a million people who have commented on a petition to the SEC.

The rule is being opposed by large business organizations such as U.S. Chamber of Commerce. Many companies donate money to such organizations, which use the money to advocate policies that favor the companies.

On April 18, Republicans in the House of Representatives introduced a bill that would prevent the SEC from making such a rule.

For more, read the New York Times story.

For more on the combined opposition to this rule by corporations, read this Center for Responsive Politics report.

To read the petition to the SEC, click here.

To read all the comments the SEC has received regarding the petition, click here.

The bill is the Focusing the SEC on Its Mission Act.

Senate bill would end overseas tax breaks

Sen. Bernie Sanders has introduced a bill that would stop corporations sheltering income in foreign tax havens and end tax breaks for companies that ship jobs and factories overseas.

Sanders said the bill, and a companion measure to be introduced in the House of Representatives by Rep. Jan Schakowsky, would raise more than $590 billion over the next decade, according to an analysis by the Joint Committee on Taxation.

Under current law, corporations are allowed to defer income taxes on overseas profits until the money is brought back into the United States. Companies also receive credits to offset taxes paid to other countries.

Eighty-three of the Fortune 100 companies in the United States, including Citigroup, PepsiCo and General Motors, use offshore tax havens, according to a 2008 Government Accountability Office report. One-quarter of the largest corporations in America pay no federal income taxes.

The Business Roundtable, which represents CEOs of major U.S. companies, has proposed raising the eligibility age for Social Security and Medicare benefits. Sanders countered with a report pointing out that 31 corporations represented by the organization have avoided $128 billion in taxes by setting up subsidiaries in foreign countries.

Click here to read Sanders' report.
Click here to read the GAO report.

Consumer Protection agency forces Capital One reimbursement

The Consumer Financial Protection Bureau has ordered Capital One to reimburse customers to whom the bank illegally sold credit card protection. It was the first time the newly-created agency has taken enforcement action against the financial industry.

Capital One was charged with - among other illegal practices - selling the protection, that would suspend late charges and minimum payments should the customer become unemployed, to customers who already were unemployed and therefore would be ineligible to receive benefits they were being charged for.

For more, read the New York Times story.