President Obama's Corporate Tax Reform Proposal Negative Towards ESOPs, Especially S ESOPs, Report The ESOP Association
WASHINGTON, Feb. 22, 2012 /PRNewswire-USNewswire/ -- The ESOP Association's President, J. Michael Keeling, released the following statement concerning President Obama's corporate tax reform proposal. The S corporation proposal would be particularly harmful to S ESOPs which Congress authorized in 1998. Further more, the proposal references two commissioned tax reform reports that recommended repeal of all ESOP tax benefits.
"I find it incredulous that President Obama travels the country talking jobs, jobs, jobs, yet his corporate tax reform policy will stifle the best jobs sustaining program in the U.S. --- the ESOP (employee stock ownership plan). Why does the Administration want to cut back on a program that creates companies that are more productive, more profitable, in the vast majority of instances, and provide sustainable jobs that are locally-controlled? For example, the 2010 General Social Survey found that less than 3% of employees of companies with employee stock ownership, which include the ESOP model and other forms of employee stock ownership, were laid off in 2009-2010 compared to a 12% rate for employees without employee stock ownership.
Our national leaders of both parties, need to understand that national policies to encourage employee stock ownership, and new policies to increase ownership among more working Americans, need to be considered as an effective way to ensure our national employment rate is where we all want it to be," stated Keeling.
The ESOP Association is the national trade association for companies with employee stock ownership plans (ESOPs) and the leading voice in America for employee ownership. The core cause of The ESOP Association is the belief that employee ownership will improve American competitiveness, increase productivity through greater employee participation, and strengthen our free enterprise economy. More information: website - www.esopassociation.org and blog – www.esopassociationblog.org.
SOURCE The ESOP Association