CEO DATELINE - Congress continues ban on forcing companies to disclose political spending
CEO DATELINE - Congress continues ban on forcing companies to disclose political spending
- September 30, 2016 |
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Walt Williams
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Business groups were recently handed a small victory when Congress voted to extend a prohibition on requiring publicly traded companies to disclose their political spending.
The Securities and Exchange Commission currently is prohibited by Congress from spending funds to enforce any rules requiring companies to disclose political contributions or dues paid to trade associations. A provision tucked instead the short-term spending bill approved by Congress and signed by President Barack Obama on Thursday continues that ban.
Left-leaning advocacy groups sought a disclosure rule in the wake of the U.S. Supreme Court's 2010 Citizens United decision, which they believed opened the floodgates to corporate spending in political campaigns. However, Republican lawmakers pushed to include a continuation of the SEC ban, which has been supported by the U.S. Chamber of Commerce and other business groups.
"Requiring controversial disclosures intended only to satisfy the idiosyncratic needs of special-interest groups should not become a routine feature of SEC rule," the U.S. Chamber of Commerce's Center for Capital Markets Competitiveness said in a July 20 letter to SEC.
Business groups didn't get everything they wanted from the spending bill. Lawmakers failed to include language in the legislation that would restore full lending powers to U.S. Export Import Bank, which has been a frequent target for critics on the political right and left.
"At a time when we continue to see lackluster growth in our economy and our foreign competitors making investments that support their companies, this inaction is appalling and nonsense," National Association of Manufacturers CEO Jay Timmons said. "Why would we give up any chance to secure more good-paying jobs here in America?"
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