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Stock Options Coalition's Letter Opposing Stock Options Tax Bill

APR. 18, 2002

Stock Options Coalition's Letter Opposing Stock Options Tax Bill

DATED APR. 18, 2002

DOCUMENT ATTRIBUTES

Institutional Authors
Coalition to Preserve and Protect Stock Options
Cross-Reference
For related coverage, see Tax Notes, Apr. 15, 2002, p. 295.
Subject Area/Tax Topics
Benefits and pensions
Corporate taxation
Legislative tax issues
Jurisdictions
United States
Language
English
Tax Analysts Document Number
Doc 2002-9565 (2 original pages)
Tax Analysts Electronic Citation
2002 TNT 76-49

April 18, 2002

The Honorable Max Baucus

Chairman

Senate Committee on Finance

United States Senate

Washington, DC 20510

The Honorable Charles Grassley

Ranking Member

Senate Committee on Finance

United States Senate

Washington, DC 20510

Re: Coalition Statement for the Record on Senate Finance Committee Hearing on Corporate Governance and Executive Compensation, April 18, 2002 - Oppose S. 1940, the Levin-McCain Stock Options Tax Bill

Dear Senators:

[1] The undersigned trade associations ask that you oppose the stock options tax bill, S. 1940, recently filed by Senators Levin and McCain. This legislation, if enacted, would:

discourage broad-based, rank-and-file access to stock options;
lead to investor confusion and less accurate financial statements; and
raise taxes on companies issuing employee stock options.

[2] Proponents of this legislation erroneously claim Enron's accounting for its employee stock options significantly contributed to its collapse. The stock options granted to Enron's employees were fully and clearly disclosed in its financial statements and had little if anything to do with its downfall.

[3] We strongly support responsible reforms that will respond to the real causes of Enron's collapse. S. 1940 will needlessly inflict harm on employees who have benefited from broad-based options plans, investors who seek transparent, accurate data on financial statements, and businesses, large and small, that are seeking to build our economy out of recession unburdened by unfair tax increases.

[4] Again, we urge you to oppose the stock options tax bill, S. 1940, filed by Senators Levin and McCain.

Sincerely yours,

AeA (American Electronics

Association)

American Bankers Association

American Benefits Council

American Business Conference

American Frozen Food Institute

(AFFI)

Arizona Software & Internet

Association

Beer Institute

Biotechnology Industry Organization

(BIO)

The Business Roundtable

Business Software Alliance

California Healthcare Institute

Electronic Industries Alliance

ERISA Industry Committee

Financial Executives International

The Financial Services Roundtable

Grocery Manufacturers of America

Information Technology Association

of America

International Mass Retail

Association

Labor Policy Association

National Association of

Manufacturers

National Association of Stock

Plan Professionals

National Food Processors

Association

National Retail Federation

National Soft Drink Association

National Venture Capital

Association

Securities Industry Association

Semiconductor Equipment & Materials

International

Semiconductor Industry Association

Snack Food Association

Society for Human Resource

Management

Software & Information Industry

Association

Software Finance and Tax Executives

Council

The Technology Network (TechNet)

U.S. Chamber of Commerce

DOCUMENT ATTRIBUTES

Institutional Authors
Coalition to Preserve and Protect Stock Options
Cross-Reference
For related coverage, see Tax Notes, Apr. 15, 2002, p. 295.
Subject Area/Tax Topics
Benefits and pensions
Corporate taxation
Legislative tax issues
Jurisdictions
United States
Language
English
Tax Analysts Document Number
Doc 2002-9565 (2 original pages)
Tax Analysts Electronic Citation
2002 TNT 76-49

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