ESOP Community’s Plan?
STAY ON COURSE!
While not unexpected, given that tax and ERISA experts continue to attack ESOPs — take note that the last three White House/Treasury set of recommendations since 2005 have all recommended eliminating ESOP tax benefits in order to lower the corporate tax rate — it is irritating that the policy of expanding employee ownership through the ESOP model that keeps jobs in America while building wealth for employee owners is ignored by these advisors to the President of the United States.
It is not clear what the impact of the so-called President’s Economic Recovery Advisory Board: The Report on Tax Reform Options: Simplification, Compliance, and Corporate Taxation, August 2010 will be. It is doubtful that Congress will specifically take up the report’s suggestions, but it will have an influence when Congress takes steps to either increase tax revenues to lower the Federal deficit and/or to lower the corporate tax rate on C corporations.
From The ESOP Association’s vantage point, major overhaul of Federal tax laws has been predicted over the past 15 months for the upcoming next two years.
What are ESOP advocates to do?
Stay the course. The ESOP community has over 100 friends of ESOPs in the current Congress. Our community needs to continue to stay, in a polite and civil way, on the radar screens of these men and women with positive ESOP stories.
With regard to those members of Congress who have no track record of being “for” ESOPs, the ESOP community needs to expose these women and men to positive ESOP stories in their states and Congressional Districts.
The proven fact is: The best defense against attacks on ESOP law is a good offense. We need members of Congress to declare FOR pro-ESOP proposals such as S. 1612 and H.R. 5207. To download “how to” guides, click here for the Advocacy Kit and here for the Congressional Company Visit Kit, and for information on pro-ESOP legislation such as S. 1612 and H.R. 5207.
Keep up with developments and details by reading the ESOP Report, the Employee Ownership Blog, and legislative bulletins from the Association.
Call or email The ESOP Association for immediate answers to any questions you might have.
Our ESOP community must continue to be proactive in persuading members of Congress that it would be foolish to snuff out ESOPs. Clearly, the unelected “experts” do not listen, and/or take the time to learn about the success of employee ownership through ESOPs.