ESOP Bulletin/Latest News

LEGISLATIVE BULLETIN

CONVENTIONAL WISDOM: ESOP COMMUNITY NEED NOT WORRY ABOUT PRESIDENTIAL PANEL’S RECOMMENDATION THAT WOULD ELIMINATE ESOPS BECAUSE IT WAS AN OVERSIGHT BY THE PANEL TO PUT FORWARD A DEFINED CONTRIBUTION PLAN RECOMMENDATION THAT WOULD ELIMINATE ESOPS!

CONVENTIONAL WISDOM IS WRONG!

Here is what the top tax official at the Department of Treasury said on December 8 to Chair of The ESOP Association Steve Voigt, Immediate Past Chair George Ray, Secretary-Treasurer Steve Sheppard, and President Michael Keeling:

Whether the Presidential Panel intended to eliminate ESOPs, or did not intend to do so is irrelevant now!

  • Treasury has made no decision what to recommend to President Bush on retirement savings and ESOPs.
  • ESOP advocates should not assume anything about what Treasury will recommend to President Bush on ESOPs—it might be same as Panel, it might be to keep ESOPs, or it might be no recommendation with regard to ESOPs.
  • The ESOP community can not sit back and assume that President Bush’s tax reform proposal to Congress, be it released in 2006, or 2007, will be “okay” for ESOPs.

The ESOP community’s voice has not been heard at Treasury.  This must change.

So, if you have not written to Secretary John Snow, and contacted your Senators and Representatives, please do so.

On The ESOP Association’s website you can find sample letters to the Department of Treasury and your Member of Congress. On the homepage, http://www.esopassociation.org/, click on the Government Affairs link, then ESOP Bulletin/Latest News link on the left side of the page, and then IMPORTANT ESOP ASSOCIATION BULLETIN link.  Or go directly to this page - http://www.esopassociation.org/gov/gov_1105_legislation.asp.

If you have questions, please contact The ESOP Association at 202/293-2971 or send an email to govrel@esopassociation.org.