April 1, 2015 (Washington, DC) – On March 25, 2015, The ESOP Association submitted comments on comprehensive tax reform to three of the Senate Committee on Finance’s Tax Reform Working Groups: Savings & Investment, Individual Income Tax, and Business Income Tax. The Association specifically stated how employee stock ownership plans (ESOPs) are in accord with the seven principles outlined by Finance Committee Chair Orrin Hatch (R-UT) for comprehensive tax reform --- Economic Growth, Fairness, Simplicity, Permanence, Competitiveness, Promoting Savings and Investments, and Revenue Neutrality.
As noted by ESOP Association President, J. Michael Keeling: “Current ESOP tax policy should be viewed with objectivity and considered fairly during the process. As ESOPs meet, and exceed, the seven principles outlined by Senator Hatch for comprehensive tax reform, we feel it is reasonable to ask that ESOP laws to promote the creation and operation of employee-owned companies be preserved, and expanded.” He went on to say, “Research proves that employee-owned companies provide more sustainable employment and preserve locally-controlled jobs in today’s global economy. We need to encourage broad-based, inclusive capitalism and increase employee ownership to ensure sustainable employment for U.S. workers, and more income for average pay employee owners.”
Read the full statements on The ESOP Association’s website: http://www.esopassociation.org/advocate/esop-bulletin.