| Washington, D.C. - Congressman Brad Sherman (D-CA) announced today that he has introduced the Enable Divestment from Sudan and Iran Act. This bill seeks to increase the economic isolation of Sudan and Iran by facilitating divestment from companies doing particular types of business with either government. The bill has ten bipartisan co-sponsors including several members of the tax-writing Ways and Means Committee and the top Republican on the Foreign Affairs Committee.
“We all support employing non-lethal means to convince regimes such as Sudan and Iran to change their policies,” said Sherman. “Economic and diplomatic pressure can work – South Africa and Libya are prime examples of states that radically shifted policies as a result of economic sanctions, and particularly in the case of South Africa, divestiture campaigns,” added Sherman.
Iran continues to defy the U.N. Security Council by enriching uranium, the key technology it needs to develop the capability to manufacture nuclear weapons. The bill would facilitate divestment from companies that have a $20 million or larger investment in Iran’s energy sector, that sell arms to Tehran, or that loan $20 million or more to the government of Iran.
Divestiture is also a key element in a strategy to increase the pressure on Sudan until it ends its genocidal activities in Darfur.” This legislation would target companies aiding Sudan’s government, while exempting companies investing in regions the Sudanese government does not control.
“In order to change the policies of the worst regimes, we have to change the policies of multilateral corporations,” Sherman said. “Divestment is a key element in our strategy to use economic pressure – until Iran gives up its pursuit of nuclear weapons and Sudan curtails its support for genocide.
Under this legislation, taxpayers will be allowed to defer the recognition of any gain on the sale of securities issued by companies which conduct certain business in Iran or Sudan, so long as they purchase similar securities issued by companies without such ties. The taxpayer will pay capital gains tax in full when the replacement property is sold.
“We need to pressure multinational corporations to change their behavior, if we are going to change the behavior of the regimes in Iran and Sudan,” said Sherman. “Encouraging investors to join the divestiture program will attract the attention of multinational corporations. Divestiture should be encouraged – not taxed.”
|
