Legal Quackery
Bruce Bartlett reviews the disaster that is Sarbanes-Oxley. It does nothing positive for business performance or investor value. It has costs which are astronomical. These costs include:
- $15 billion in compliance costs
- $1 Trillion in market capitalization
- increasing difficulty in attracting people willing to serve as directors
- foreign companies delisting from stock exchanges and domestic companies going private or deciding not to go forward with plans to go public.
Bottom Line -- zero benefit for anyone (except CPAs) and enormous costs to shareholders, workers and everyone who wants a good economy.
The last time Congress was this stupid was when the Dems pushed through the "luxury tax" which devastated the boat building industry, forced half its workers to lose their jobs and caused a substantial loss to the treasury (small tax collections more than offset by lost income taxes from workers and businesses and increased unemployment benefits).
- $15 billion in compliance costs
- $1 Trillion in market capitalization
- increasing difficulty in attracting people willing to serve as directors
- foreign companies delisting from stock exchanges and domestic companies going private or deciding not to go forward with plans to go public.
Bottom Line -- zero benefit for anyone (except CPAs) and enormous costs to shareholders, workers and everyone who wants a good economy.
The last time Congress was this stupid was when the Dems pushed through the "luxury tax" which devastated the boat building industry, forced half its workers to lose their jobs and caused a substantial loss to the treasury (small tax collections more than offset by lost income taxes from workers and businesses and increased unemployment benefits).
posted by Stan at 10:18 AM
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