Cox In the Henhouse

Whenever Rep. Christopher Cox (R-CA) had the opportunity to hold corporate wrongdoers accountable, protect Social Security, and be fiscally responsible, he voted in favor of corporate interests instead. Despite this, Bush has nominated Cox to be Chairman of the Securities and Exchange Commission -- the chief watchdog and protector of millions of Americans' investments. How can we expect Cox to look out for the economic and retirement security of middle class Americans when he undermined protections for working families and retirees at nearly every opportunity as a Congressman? How can Cox be an impartial "corporate cop" when one of his main contributors has been the very industry he is slated to oversee?

Cox Has Accepted Campaign Contributions from Industry that He Is Supposed to Oversee

Securities Industry Is a Major Source of Campaign Cash for Cox. Rep. Christopher Cox (R-CA) has accepted $254,412 from the securities and investment industry-the fourth largest industry contributor to Cox over the course of his career. As Securities and Exchange Commission Chairman, it would be Cox's primary duty to provide oversight to the securities and investment industry. [Tray.com; OpenSecrets.org]

Cox's Idea of Law Enforcement Was a Pardon for Oliver North

Urged pardon for Oliver North. Cox urged a pardon for Oliver North while running for Congress in a crowded Republican primary. North in turn endorsed Cox, who went on to win the primary. [Los Angeles Times, 6/3/1988; Orange County Register, 5/6/1988]

Cox "Delighted" North Acquitted of Some Counts. According to the Los Angeles Times, "Orange County Rep. C. Christopher Cox (R-Newport Beach) said he was 'delighted' that North was found not guilty of the more serious counts brought in the indictment more than a year ago. Cox said that it was a 'sad commentary' that all that resulted from the $12-million trial was conviction on charges that he said were equivalent to 'the fire department (being convicted) for double parking at the scene of the fire.'" North was eventually convicted of accepting an illegal gratuity, aiding and abetting in the obstruction of a congressional inquiry, and destruction of documents, but the convictions were overturned on appeal. [Los Angeles Times, 5/5/89]

Joked About Shredding Documents at North Fundraiser. "[A]ll of us who worked at the White House were disappointed when we learned that President Reagan had actually pardoned Ollie, and that by mistake, Ollie had accidentally included it with a batch of entitlements he was shredding." [Orange County Register, 3/22/1990]

Cox Was Once Named in Lawsuit for Ripping Off Investors

Cox Was Once Named in Law Suit for Misleading Investors About Real Estate Investments. In 1995, Cox was named as a defendant in a lawsuit by investors as a result of legal work that he did at Latham & Watkins for an investment group in the 1980s. According to the New York Times, "The suit accused Mr. Cox, his former law firm and two former colleagues of misleading regulators and investors about the condition of a real estate investment fund. Mr. Cox, who denied that he had violated any laws, was eventually dropped from the lawsuit and the firm where he worked, Latham & Watkins, settled for an undisclosed amount." [New York Times, 6/2/05; Associated Press, 2/24/95]

Cox Sponsored Legislation to Shield Lawyers and Accountants in Investment Fraud Lawsuits Like the One He Was Named In. In addition, the day after Cox was questioned about whether he knew pertinent facts of the case, such as whether his client's real estate license had been revoked, he amended his legislation to prevent lawyers and others from being sued if they "genuinely forgot to disclose" important information. [Associated Press, 2/24/95]

Cox Had Ties to Lobbyist Jack Abramoff

Cox Has Close Ties to Ethics-Impaired Lobbyist Jack Abramoff. Abramoff took a job as a Washington lobbyist for the firm Preston Gates Ellis & Rouvelas Meeds in 1994. In its hiring announcement, the firm said that Abramoff "maintains strong ties to Speaker Newt Gingrich, Majority Leader Dick Armey, Majority Whip Tom Delay and [House] Republican Policy Committee Chairman Chris Cox and their staffs." [Washington Post, 11/8/04; Preston Gates Ellis & Rouvelas Meeds Press Release, 12/30/94, emphasis added]

Cox Has Repeatedly Undermined Corporate Accountability-One of His Chief Responsibilities as SEC Chair

Cox Voted to Give Federal Loans to Corporations that Move Offshore. In 2004, Cox voted against barring federal loans to American companies that have escaped paying U.S. taxes by moving offshore. The provision would forbid such companies from getting loans from the Export-Import Bank, a federal agency that helps American export firms. An estimated 250,000 jobs are lost annually to offshoring. The amendment to block the loans passed, 270-132. [HR 4818, Roll Call #386, 7/15/04; AP, 6/30/04 & 7/15/04]

Cox Voted to Give Homeland Security Contracts to Offshore Tax Dodgers. In 2002, Cox opposed an effort to bar companies that avoid paying U.S. taxes by moving their headquarters overseas from being awarded contracts with the new Homeland Security Department. The tax haven countries banned in the amendment were: Bermuda, Barbados, the British Virgin Islands, Cayman Islands, the Bahamas, Cyprus, Gibraltar, the Isle of Man, Monaco and the Seychelles. The final bill creating the new department included the ban but exempted corporations that had moved overseas before the law was passed. The motion passed, 318-110. [HR 5005, Roll Call #366, 7/26/02; Baltimore Sun, 1/27/02; AP, 7/27/02; CQ Weekly,6/19/04]

Cox Voted Against a Tough Measure to Crack Down on Greedy CEOs. In 2002, Cox opposed an Enron debacle inspired proposal to require company executives to personally certify the accuracy of corporate financial statements. It also would have enabled the SEC to strip stock bonuses from executives who falsify statements and would have mandated that companies change their accounting firms every few years. The measure would have required rules from Wall Street's self-governing bodies prohibiting analysts from holding stock in companies they cover and from having their compensation tied to their firms' investment banking revenues. Thousands of Enron employees lost their retirement savings as the company's stock plunged in 2001, while top executives cashed out hundreds of millions of dollars of stock. The measure was rejected, 202-219. [HR 3763, Roll Call #108, 4/24/02; Associated Press, 4/24/02]

Cox Supported Giving $25 Billion in Tax Rebates to Big Corporations Such as Enron. In 2001, Cox voted for the GOP stimulus package, which included $25 billion in payments to big business but did not include significant provisions for displaced workers. The bill gave 83 percent of its benefits in FY 2002 to corporations and the wealthy. Only 16.5 percent of the benefits went to low- and middle-income taxpayers and the unemployed. Enron would have received $254 million in alternative minimum tax rebates. The bill passed 216-214. [HR 3090, Roll Call #404, 10/24/01; CBPP, 11/5/01; CTJ, 10/16/01]

Cox Voted for Billions in Tax Breaks for Overseas Corporations. In 2001, Cox voted for a $214 billion stimulus proposal that included a $6.5 billion tax break extension for financial corporations with overseas operations. Under current law, U.S. firms are taxed on some types of income earned by foreign corporations that they control, regardless of whether the income is distributed back to the United States. A temporary provision, due to expire in 2002, exempts income earned in banking, finance, and insurance from these rules. The stimulus proposal would extend the exemption for an additional five years. The bill passed 224-193. [HR 3529, Roll Call #509, 12/20/01; CBPP, 12/26/0112/21/01]

Cox Voted to Strip Conflict-of-Interest Protections on Investment Advice. In 2001, Cox voted for a measure backed by the securities industry that allows investment companies hired by employers to offer advice as long as they disclose any fees and potential conflicts of interest. A 1974 law prohibits investment firms from giving specific advice if it covers any of their own products or services. Opponents, including the AARP, argued the bill strips employees of protections from conflicts of interest by requiring only disclosure of potential conflicts. They also argued that a mutual fund company, for example, would steer employees toward its own investments at the expense of other equally good or better products. The bill passed 280-144. [HR 2269, Roll Call #442, 11/15/01; Chicago Tribune. 11/16/01; Los Angeles Times. 11/16/01; Associated Press. 11/15/01]

Cox Repeatedly Undermined Protections for Investors-Another Chief Function for the SEC Chair

Cox Voted to Repeal a Ban on Conflict-of-Interest Arrangements. In 2004, Cox opposed a motion concerning conflicts of interest that could harm creditors in bankruptcy proceedings. The bill, S 1920, repealed a ban on investment bankers continuing to represent corporations after they file for bankruptcy. By promoting impartiality, the 65-year-old ban is designed to protect creditors. On this vote, members refused to advise House-Senate conferees to keep the ban in the final version of the bill. The motion failed 146-203. [S 1920, Roll Call #11, 1/28/04; Aberdeen American News. 2/1/04]

In 2001, Cox Again Voted Against Protecting Employees from Tainted Investment Advice. In 2001, Cox opposed a proposal to give participants in employer-sponsored retirement plans more protections from potential conflicts of interest among financial advisors. The measure would have required that employers make available advisors from competing financial firms, and that advisors tell employees if they stand to gain higher commissions or other advantages if an employee makes one choice over another. The measure failed 180-243. [HR 2269, Roll Call #441, 11/15/01; Los Angeles Times, 11/16/01]

In 2002, Cox Again Voted Against Providing Workers with Independent Investment Advice. In 2002, Cox opposed a proposal to provide employees independent investment advice, include a worker representative on a corporate pension board, require that workers be notified when executives sell company stock and increase penalties for mismanagement of retirement savings plans. The bill would have forced companies to tell workers within a single business day if a senior executive sold more than $100,000 worth of company stock. The measure was rejected, 187-232. [HR 3762, Roll Call #90, 4/11/02; Baltimore Sun. 4/12/02; Houston Chronicle. 4/12/02]

In 2003, Cox Again Sided with Greedy CEOs and Against Protecting Workers' Pension from Tainted Investment Advice. In 2003, Cox voted against legislation requiring that corporate executive pension and stock options be subject to the same rules that apply to their workers' plans. The bill would have imposed an excise tax on executives who try to leave with lavish pension benefits just as the company is going under. The measure also would have removed GOP language allowing company-picked portfolio advisers to tout stocks to employees in which they have a financial interest. The plan was rejected, 193-236. [H.R. 1000, Roll Call #187, 5/14/03; Chicago Tribune. 5/15/03; Congressional Quarterly Weekly. 5/16/03; The Corporate Library, "Golden Parachutes and Cushion Landings" & "Paying CEOs to Stay at Home," 2/26/03; AARP, "The Policy Book: AARP Public Policies 2003"; Washington Post. 5/18/03]

Cox Repeatedly Voted to Erode Retirement Protections for Seniors

In 2004, Cox Voted for a Scaled-Down Pension Relief Bill. In 2004, Cox voted to enable companies like DuPont, Raytheon, and Delta Air Lines to cut required pension contributions by nearly a half. The pension bill was designed to save U.S. companies - whose pension plans had suffered from stock market losses - as much as $80 billion on retirement costs over two years. [HR 3108, Roll Call #117, 4/3/04; Washington Post, 4/3/04]

Cox Voted to Undermine Protections for Retirement Savings. In 2002, Cox voted to undermine current protections for retirement savings. The bill would end conflict-of-interest restrictions that prevent financial firms such as Fidelity Investments from both managing corporate-sponsored retirement plans and offering specific advice about what products to buy. There were 42 million 401(k) accounts at the end of 2000, with nearly $2 trillion in assets. Enron workers lost nearly $1 billion as the company lurched into bankruptcy and stock prices plummeted. Under the bill, financial services firms like Fidelity and Merrill Lynch that administer 401(k) plans could offer specific investment advice to workers - even if it posed a conflict of interest. An additional provision would eliminate laws that ban a company from rewarding executives' retirement plans more generously than those for rank-and-file workers. Existing laws seek to create parity between top executives and other employees. The measure passed, 255-163. [HR 3762, Roll Call #92, 4/11/02; Boston Globe. 4/12/02; Dallas Morning News. 4/12/02]

Cox Was Repeatedly Fiscally Irresponsible - Yet Would be Expected as SEC Chair to Ensure Companies' Fiscal Responsibility

Cox Voted for Bush's 2001 and 2003 Tax Cuts Which Gave Little Money to Working Americans and Plunged the U.S. from Surplus to Deficit. Cox voted in favor of Bush's 2001 and 2003 tax cuts, which turned a $5.6 trillion ten-year surplus into a $4 trillion ten-year deficit. Despite Bush's misleading rhetoric, almost half of all American taxpayers received less than $100 in 2004 from Republican tax cuts. In 2005, three quarters of taxpayers will get less than $100. In 2006 and beyond, nearly nine out of ten taxpayers will receive less than $100. [Conf. Rept., Roll Call #225, 5/23/03; Conf. Rept, Roll Call #0149, 5/26/01; CBO, Budget and Economic Outlook, 1/01, 1/05, Preliminary Analysis of the President's Budget Request for 2006, 3/4/05; CBPP, 1/25/04; Washington Post, 1/26/05; Citizens for Tax Justice, 5/30/03]

Cox Voted for Huge Tax Cut Package for Wealthy Americans & Big Corporations. Cox repeatedly voted for the House Republicans' $792 billion tax cut plan, to be phased in over 10 years. In addition, businesses received $100 billion in tax breaks, including the ability to deduct 80 percent of business meals. Other benefits were awarded to everyone from retailers to the timber industry and oil and gas producers. [HR 2488, 7/22/99, CQ #333; 8/5/99, CQ #379]

Cox Backed Huge Tax Cuts Paid for with Social Security Surplus. In 1999, Cox voted five times for the GOP Leadership's budget plan that would give $778 billion tax cuts over 10 years, to be ultimately paid for by using part of the Social Security surplus. Experts warned them that the budget surpluses, including the Social Security Trust Fund, would have to be used to pay for any tax cut [CQ Weekly Report, 4/17/99, H Con Res. 68, #72, #73, #77, #84, #85, 3/25/99-4/14/99]

Cox Backed Abolishing the Tax Code without Creating a Replacement. Cox voted repeatedly to abolish the current tax code before any sound alternative was created. This risked throwing family and corporate budget planning into chaos by preventing them from having any ability to plan long term. [HR 3097, 06/17/98, CQ #234]

Cox Repeatedly Voted to Erode Social Security And Entitlement Protections for Seniors

Cox Backed Using Social Security Trust Fund for Tax Cuts. In 1999, Rep. Christopher Cox (D-CA) voted five times for the GOP Leadership's budget plan that would require using part of the Social Security surplus to pay for an exploding tax cut of an estimated $778 billion over the next 10 years. Experts warned that the budget surpluses, including the Social Security Trust Fund, would have to be used to pay for any tax cut. [CQ Weekly Report, 4/17/99; H Con Res 68, CQ #72, 73, 77, 84, 85, 3/25/99-4/14/99]

Cox Voted to Raid as Much as $17 Billion from Social Security; Cuts in Meals-on-Wheels. Cox joined the majority of Republicans in support of a 1999 bill that forced across-the-board cuts in several programs, no matter how crucial to seniors, including funding for Meals-on-Wheels and money for the enforcement of nursing home standards. The bill, the last in a string of spending bills written by the GOP leadership, also forced a raid of the Social Security Trust Fund of more than $17 billion, according to a letter released by the non-partisan Congressional Budget Office. [HR 3064, CQ#549, 10/28/99]

Cox Supported Gingrich's "Contract with America" Medicare Cuts. Cox signed on to Newt Gingrich's plan to force Medicare to "wither on the vine." He voted in lockstep with the Republican leadership to reduce spending on Medicare by $270 billion over seven years. [HR 2491, 11/17/95, CQ #812]

Cox Backed Huge Tax Cuts Paid for with Social Security Surplus. In 1999, Cox voted five times for the GOP Leadership's budget plan that would give $778 billion tax cuts over 10 years, to be ultimately paid for by using part of the Social Security surplus. Experts warned them that the budget surpluses, including the Social Security Trust Fund, would have to be used to pay for any tax cut. [CQ Weekly Report, 4/17/99, H Con Res 68, #72, #73, #77, #84, #85, 3/25/99-4/14/99]

Cox Repeatedly Slighted the Needs of Working Families

Cox Voted Against Raising the Minimum Wage. On May 23, 1996, Cox joined 155 of his Republican colleagues and voted against raising the minimum wage. Moreover, he also voted for an amendment that would have exempted some small businesses from all minimum wage requirements. [HR 1227, 5/23/96, CQ #192, #194; HR 3448, 8/1/96, CQ #398; HR 3846, 3/9/00, CQ #43]

Cox Opposed Vocational Training. Cox voted against a 1997 measure that would have required states and localities to spend at least 10.5 percent of federal vocational education funds on programs which promote gender equity and assist displaced homemakers, single parents and single pregnant women. By a vote of 207-214, the plan was defeated. [HR 1853, 7/22/97, CQ #286-288]

Cox Opposed Protecting the Wages of Low-Income Workers. Cox supported a 1997 Republican bill that would allow employers to force workers into taking the "comp time" option instead of taking more money home in their paychecks. The bill also encouraged employers to replace paid vacation and other benefits with comp time. Furthermore, the proposal did not guarantee that workers could use the comp time when they really need it. [HR 1, 3/19/97, CQ #57]

Cox Backed a Plan Making It Easier for Companies to Avoid Paying Employee Benefits. Cox supported the House Republican 1997 Budget proposal that included language that would have made it easier for companies to classify their workers as "independent contractors." When they are allowed to classify their workers as "independent contractors," employers do not have to withhold unemployment and Social Security taxes, or provide health insurance, pensions or other benefits. Labor laws such as the minimum wage, family and medical leave and civil rights laws do not protect workers who are independent contractors. [HR 2014, 6/26/97, CQ #245]

Cox Opposed Targeted Tax Cuts for Working Families. In 1997 Cox opposed $84 billion in tax cuts for the middle class, including a child tax credit and an education tax credit for four years of college education. He also supported the House Republican Budget proposal that denied tax relief to working families and opposed a Democratic alternative that would have given tax relief to all families with children. [HR 2014, 7/10/97, CQ #258; HR 2014, 6/26/97, CQ #243, #245]