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Outlawing Stock Ownership by Congresspeople?

 
 
 
lpetrich

lpetrich

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Alexandria Ocasio-Cortez on Twitter: "Members of Congress should not be allowed to own individual stock.
We are here to serve the public, not to profiteer. It’s shocking that it’s even been allowed up to this point." / Twitter
then
Ilhan Omar on Twitter: "They shouldn’t and @AngieCraigMN’s bill bans them from doing just that.
I am signing on to the Humble Act today and encourage members to do the same. https://t.co/SJSjDeZhYd" / Twitter

That bill:
H.R.3419 - 116th Congress (2019-2020): Halt Unchecked Member Benefits with Lobbying Elimination Act | Congress.gov | Library of Congress - the HUMBLE Act

Most of that bill outlaws lobbying by former Congresspeople, and that's something that AOC and Ted Cruz worked on last year. In an interview about it, AOC said that writing such a bill was challenging, because there are ways around anti-lobbying laws, like being a consultant.


The main problem with this effort is what to do about stock that one owns when one is elected. The usual solution seems to be to put it into a "blind trust", meaning that one can't do anything with it.
 
lpetrich said:
Alexandria Ocasio-Cortez on Twitter: "Members of Congress should not be allowed to own individual stock.
We are here to serve the public, not to profiteer. It’s shocking that it’s even been allowed up to this point." / Twitter
then
Ilhan Omar on Twitter: "They shouldn’t and @AngieCraigMN’s bill bans them from doing just that.
I am signing on to the Humble Act today and encourage members to do the same. https://t.co/SJSjDeZhYd" / Twitter

That bill:
H.R.3419 - 116th Congress (2019-2020): Halt Unchecked Member Benefits with Lobbying Elimination Act | Congress.gov | Library of Congress - the HUMBLE Act

Most of that bill outlaws lobbying by former Congresspeople, and that's something that AOC and Ted Cruz worked on last year. In an interview about it, AOC said that writing such a bill was challenging, because there are ways around anti-lobbying laws, like being a consultant.


The main problem with this effort is what to do about stock that one owns when one is elected. The usual solution seems to be to put it into a "blind trust", meaning that one can't do anything with it.
Click to expand...

Note that she said "individual stock". That makes it not a big deal--index funds or exchange-traded funds. (The latter are basically index funds packaged as stock--they're a bit more tax friendly and slightly cheaper to operate.) Broad market indexes only, no sector funds.
 
Loren Pechtel said:
lpetrich said:
Alexandria Ocasio-Cortez on Twitter: "Members of Congress should not be allowed to own individual stock.
We are here to serve the public, not to profiteer. It’s shocking that it’s even been allowed up to this point." / Twitter
then
Ilhan Omar on Twitter: "They shouldn’t and @AngieCraigMN’s bill bans them from doing just that.
I am signing on to the Humble Act today and encourage members to do the same. https://t.co/SJSjDeZhYd" / Twitter

That bill:
H.R.3419 - 116th Congress (2019-2020): Halt Unchecked Member Benefits with Lobbying Elimination Act | Congress.gov | Library of Congress - the HUMBLE Act

Most of that bill outlaws lobbying by former Congresspeople, and that's something that AOC and Ted Cruz worked on last year. In an interview about it, AOC said that writing such a bill was challenging, because there are ways around anti-lobbying laws, like being a consultant.


The main problem with this effort is what to do about stock that one owns when one is elected. The usual solution seems to be to put it into a "blind trust", meaning that one can't do anything with it.
Click to expand...

Note that she said "individual stock". That makes it not a big deal--index funds or exchange-traded funds. (The latter are basically index funds packaged as stock--they're a bit more tax friendly and slightly cheaper to operate.) Broad market indexes only, no sector funds.
Click to expand...

And no buying, selling or trades until they leave office. I'm down with that!
 
Loren Pechtel said:
lpetrich said:
Alexandria Ocasio-Cortez on Twitter: "Members of Congress should not be allowed to own individual stock.
We are here to serve the public, not to profiteer. It’s shocking that it’s even been allowed up to this point." / Twitter
then
Ilhan Omar on Twitter: "They shouldn’t and @AngieCraigMN’s bill bans them from doing just that.
I am signing on to the Humble Act today and encourage members to do the same. https://t.co/SJSjDeZhYd" / Twitter

That bill:
H.R.3419 - 116th Congress (2019-2020): Halt Unchecked Member Benefits with Lobbying Elimination Act | Congress.gov | Library of Congress - the HUMBLE Act

Most of that bill outlaws lobbying by former Congresspeople, and that's something that AOC and Ted Cruz worked on last year. In an interview about it, AOC said that writing such a bill was challenging, because there are ways around anti-lobbying laws, like being a consultant.


The main problem with this effort is what to do about stock that one owns when one is elected. The usual solution seems to be to put it into a "blind trust", meaning that one can't do anything with it.
Click to expand...

Note that she said "individual stock". That makes it not a big deal--index funds or exchange-traded funds. (The latter are basically index funds packaged as stock--they're a bit more tax friendly and slightly cheaper to operate.) Broad market indexes only, no sector funds.
Click to expand...

This seems reasonable. It is a privilege to serve in Congress.
 
What exactly did Richard Burr do that was so heinous? He only abused his position of responsibility for financial gain. To paraphrase one of Trump's many chief of staff, this happens all the time. Why is this different than a politician who gets kickbacks from the coal industry to say it's okay to drink the water around Flint, or using your position to make sure your hotels are raking in the dollars whilst you are in office. Plenty of other examples to highlight as we all know.

There appears to be outrage over how Burr abused his position to profit, not the fact that he did it in the first case. That argument makes about as much sense as saying it's okay to be a rapist, so long as your paperwork is in order.
 
Patooka said:
What exactly did Richard Burr do that was so heinous? He only abused his position of responsibility for financial gain. To paraphrase one of Trump's many chief of staff, this happens all the time. Why is this different than a politician who gets kickbacks from the coal industry to say it's okay to drink the water around Flint, or using your position to make sure your hotels are raking in the dollars whilst you are in office. Plenty of other examples to highlight as we all know.

There appears to be outrage over how Burr abused his position to profit, not the fact that he did it in the first case. That argument makes about as much sense as saying it's okay to be a rapist, so long as your paperwork is in order.
Click to expand...

It's all the same, morally. Most of that is legal, though. Indeed, I think inherently the American political process is corrupt. I think so do most, which is why you have such low voter turnout. But insider trading is illegal, and legislation regarding specifically members of congress and stocks has been passed.

While I wish we would require our politicians to act morally, I think we must demand they act legally.

But of course, you are right. What Burr did here is probably a lower-level moral offense compared to what is accepted as day-to-day business in America's political process.
 
Elixir said:
Loren Pechtel said:
lpetrich said:
Alexandria Ocasio-Cortez on Twitter: "Members of Congress should not be allowed to own individual stock.
We are here to serve the public, not to profiteer. It’s shocking that it’s even been allowed up to this point." / Twitter
then
Ilhan Omar on Twitter: "They shouldn’t and @AngieCraigMN’s bill bans them from doing just that.
I am signing on to the Humble Act today and encourage members to do the same. https://t.co/SJSjDeZhYd" / Twitter

That bill:
H.R.3419 - 116th Congress (2019-2020): Halt Unchecked Member Benefits with Lobbying Elimination Act | Congress.gov | Library of Congress - the HUMBLE Act

Most of that bill outlaws lobbying by former Congresspeople, and that's something that AOC and Ted Cruz worked on last year. In an interview about it, AOC said that writing such a bill was challenging, because there are ways around anti-lobbying laws, like being a consultant.


The main problem with this effort is what to do about stock that one owns when one is elected. The usual solution seems to be to put it into a "blind trust", meaning that one can't do anything with it.
Click to expand...

Note that she said "individual stock". That makes it not a big deal--index funds or exchange-traded funds. (The latter are basically index funds packaged as stock--they're a bit more tax friendly and slightly cheaper to operate.) Broad market indexes only, no sector funds.
Click to expand...

And no buying, selling or trades until they leave office. I'm down with that!
Click to expand...

I would have no problem with them buying or selling with say a 3 month lag. Saying no transactions doesn't make sense because most people are going to invest during their term in office and some will pull out money for big expenses.
 
 
Loren Pechtel said:
Elixir said:
And no buying, selling or trades until they leave office. I'm down with that!
Click to expand...

I would have no problem with them buying or selling with say a 3 month lag. Saying no transactions doesn't make sense because most people are going to invest during their term in office and some will pull out money for big expenses.
Click to expand...

They can put money into something like an escrow account or HSA for that purpose. No fuckery! If they can't live on 175k/yr and have other liquid assets, they can create a liquid account for that purpose. The can spendthe money but there should be no chance to manipulate those assets while in office.
 
Elixir said:
Loren Pechtel said:
Elixir said:
And no buying, selling or trades until they leave office. I'm down with that!
Click to expand...

I would have no problem with them buying or selling with say a 3 month lag. Saying no transactions doesn't make sense because most people are going to invest during their term in office and some will pull out money for big expenses.
Click to expand...

They can put money into something like an escrow account or HSA for that purpose. No fuckery! If they can't live on 175k/yr and have other liquid assets, they can create a liquid account for that purpose. The can spendthe money but there should be no chance to manipulate those assets while in office.
Click to expand...

You misunderstand.

1) At that income level I would expect them to be saving money--and that money would go into the market. Prohibiting them from purchasing stock is thus unreasonable. This is the most likely transaction I would expect from someone in Congress.

2) I do not expect them to live on stock, but what about college? If you're putting a few kids through college you're probably drawing down savings meant for the purpose. Stock sales.

3) What about transactions you have little choice in? If a company goes under it's a lot safer with the IRS to sell your shares. (The problem is you're only allowed to declare the capital loss in the year in which the shares become worthless--but exactly when that happens isn't always perfectly clear-cut. If the IRS decrees you got the year wrong you don't get to take the loss. Selling them for $0 leaves no question and thus is the standard practice.)

Limiting them to broad index funds avoids almost all the potential for misdealing while being a minimal burden for the people and avoids the possibility of a blind trust not really being perfectly blind.
 
Jeff Merkley on Twitter: "Thrilled to see my friends @RajaForCongress @AOC & [MENTION=2]Jo[/MENTION]eNeguse leading the House charge to pass my & @SherrodBrown’s ban on congressional stock trading. We need to know that elected leaders are making decisions based on the nation’s interest, not their own. https://t.co/w7VWQSePEP" / Twitter
noting
Alexandria Ocasio-Cortez to Co-Sponsor House Bill Banning Members of Congress From Trading Stocks
noting
Representatives Krishnamoorthi, Ocasio-Cortez, and Neguse To Introduce Legislation To Prohibit Government Officials From Profiting Off Their Positions By Trading Stocks | Congressman Raja Krishnamoorthi
“The recent news reports have made it clear that it’s past time to end the potential conflicts of interest created by Members of Congress and their top staffers trading in stocks while making decisions affecting their values and receiving sensitive, nonpublic information through government service,” said Krishnamoorthi. “Our legislation will prevent members from trading individual stocks and holding positions on corporate boards to help ensure that Congress is working for the American people and not their own stock portfolios.”

“Members of Congress should not be allowed to buy and sell individual stock,” said Ocasio-Cortez. “We are here to serve the public, not to profiteer.”

“The Ban Conflicted Trading Act will hold all members accountable to ensure they do not use their position in office to make a personal profit,” said Neguse. “This is a common-sense measure to help even the playing field for every American who is trading public stock, and I am proud to co-lead this important legislation with Representatives Krishnamoorthi and Ocasio-Cortez.”
Click to expand...
 
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