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A number of Democrats have expressed concern that lifting the restrictions would only encourage fraud by less-reputable institutions.
Oil refiners also warn that higher prices for the credits will encourage fraud, something the ethanol trading system has encountered in the past.
Some senators have raised questions about adding a separate $800 charitable deduction for married couples on top of that, arguing that it will encourage fraud.
The act does not encourage fraud at small companies, and emerging growth companies that hope to survive more than five years will have to plan on meeting the stringent requirements of Section 404.
Generous options grants may also encourage fraud; the business professors Jared Harris and Philip Bromiley, who have made a study of hundreds of firms forced to restate earnings after accounting irregularities, found that companies that paid out most of their compensation in stock options were far more likely to end up restating earnings.
Whether the Jump-start Our Business Start-ups Act will create jobs or only encourage fraud is open to debate, but one thing is clear: this piece of legislation is a reminder that Congress, both Democrats and Republicans, are completely inept at regulating our financial system.
Similar(45)
It has encouraged fraud and nepotism.
In addition to the colleges that encouraged fraud, all the colleges made some deceptive statements.
The report gave specific instances in which some colleges encouraged fraud.
Fraud didn't cause the bubble, but the bubble encouraged fraud.
The postal vote reinforces clan politics, encourages fraud, and damages democracy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com