""Frankly, if Congress doesn't codify it, they'll go into court. My sense [is] it's really difficult to justify tax changes because the president wanted to change them,""
""I think they [lawmakers] would have to because they [defense firms] have no shortage of lawyers, and they'll go into court and say, 'This is not within the tax code. You can't do it,'""
""This situation will no longer be allowed or tolerated!""
President Donald Trump issued an executive order limiting defense contractors' ability to pay dividends and buy back stock. The EO directs the Defense Department to review contractor performance and to penalize poor performers that fail to resolve issues with the Pentagon. Future contracts can be written to limit stock buybacks, dividends and executive compensation when contractors miss performance metrics. Sen. Jack Reed said Congress likely must codify such restrictions into law to withstand legal challenges, noting contractors have abundant legal resources and that tax changes are hard to justify solely by presidential action. Sen. Mike Rounds praised the EO for encouraging larger capital investments by contractors.
Read at Breaking Defense
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