Repeal The Sarbanes-Oxley Tax Now!

from the sounds-reasonable dept

Many people agree that the Sarbanes-Oxley Act was simply an overreaction to all the corporate scandals from the last year, and that it's unlikely to do much to stop thieving, scamming execs. However, there is very real cost for companies to comply with the Sarbanes-Oxley Act, and it's hitting smaller companies especially hard. The article talks about how it's costing Borland an additional $3 million, at a time when that money could clearly be better spent. At the same time, it's creating a "cover your ass culture", according to the CEO of Tibco. Instead of responding to customer demand, they're now spending all their time looking at the possible impact of any move in accordance to the new Act. I agree that executives need to be held more responsible, but it seems that a law like this probably should have been passed after some more careful thought and discussion, instead of immediately following the exposure of some of the excesses. As it stands now, Sarbanes-Oxley seems likely to hinder many businesses without doing much to stop criminal behavior. As such, it doesn't seem particularly useful.
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  1. identicon
    John Starling, 30 Jul 2007 @ 1:05am

    Great stuff please read and learn

    Here is the best article I have found explaining why SOX hurts shareholders and why it is terrible for the country.
    http://www.lewrockwell.com/orig8/haman2.html

    I learned a lot I didn't know.

    Also, from a man who is running for President and has written about the subject many times in the past:

    http://www.house.gov/paul/congrec/co...5/cr041405.htm
    http://www.approva.net/audittrail/20 ...5-years-later/
    http://www.house.gov/paul/congrec/co...2/cr020402.htm


    Companies are leaving the public sector and capitol is being lost. None of that is good for this country. But those articles are so well written. Please read.

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