Message to Help Save ESOP Tax Law

The Senate has officially begun a process to identify what to include or eliminate in tax reform. Following is information that can be used as a sample letter, email, and/or the basis for a phone call. If you are sending an email, please be sure that someone in the Senate office is expecting the email.

If you would like additional information about the tax reform process, please visit The ESOP Association’s Blog here.

If you would like to download the following, please use the following link to download the Word file – Save ESOP Tax Law Letter.


Suggested Letter/Email/Phone Message to Help Save ESOP Tax Law

Dear Senator ________:

[Name of Company] is owned (by X%) by its employees through an employee stock ownership plan, or an ESOP.

We have learned that Senators Baucus and Hatch have requested that you communicate to them what special tax law provisions you would include in our nation’s tax laws if you were drafting a new tax code for the Federal government if starting from scratch.

[Name of company] and its x employees have benefited from its ESOPs.  [Here you may wish to set forth brief statement[s] how your ESOP has benefited your company and your employees.].

And we are not alone, as there are pages and pages, charts after charts, that prove ESOP companies are good for the U.S. economy, are fair by making middle class employees capitalists, and provide excellent retirement benefits.  Among these 35 plus years of research and surveys of ESOP companies and their employees, the General Social Survey of 2010 evidenced that during the Great Recession employee stock owned companies laid off employees at a rate of 2.6% whereas conventionally owned companies laid off employees at a rate of 12.1%. In sum, promoting ESOP creation and operation is the best jobs policy in the U.S. as the evidence is that the vast majority of ESOP companies are more productive, more profitable, providing locally controlled jobs that through ownership provide better retirement savings benefits than non-ESOP companies.

We at [name of company] thus respectfully request that you communicate to Senators Baucus and Hatch that you believe our national tax policy should continue to encourage employees stock ownership through ESOPs.

Your consideration is appreciated.

Sign by [Senior Executive], or [Employees]

Email:  Only if you have a contact in your Senator’s office, in other words, someone you have talked to before in a personal visit, or via telephone, or have emailed before and there was a response, the same message can be used in an email to the person with whom you had previous contact.

Telephone call:  There are two kinds of telephone calls, and in each you will be talking to, or leaving a message for a staff person.

Type Call 1:  This call is your initial communication to the Senator’s office.  As the person answering the phone, ask if you may speak to the person who is responsible for issues arising from the Federal income tax laws.

If you speak to that person, repeat the message in the suggested letter.

In all probability, you will be placed in that person’s voice mail.  Leave a message similar to the suggested letter, and your name and request a return phone call.

If after a week or so there is no return call, call again, and politely repeat the message, and politely ask if the Senator has decided what to convey to Senator Baucus and Hatch.

Type Call 2:  This call is made two weeks or so after sending in your letter or email.  In this call, you politely ask, if you have received no response to your letter or Email, if it was received.  If not, ask if you can Email a copy, or Email again, or fax it.  If yes, ask if the Senator has decided to convey any position to Senators Baucus and Hatch with regard to ESOP laws.

[If asked about the research evidence you refer to in your letter, email, or phone call, refer the Senate staff person to]


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