Today, ESOP Association President J. Michael Keeling, will participate in the Senate Small Business Committee Tax Roundtable which will review key provisions of current tax law that impact small businesses. In particular, Mr. Keeling will be responding to the Committee’s specific inquiry as to what current tax laws that encourage the creation and operation of employee ownership through the ESOP model should be retained.
Mr. Keeling will emphasize that the modest incentives for ESOP creation and operation have resulted in employee owned companies that, as research has consistently shown, are more productive, more profitable, and provide locally-controlled, sustainable jobs in the United States. In particular, he will bring to the Committee members’ attention the General Social Survey of 2010 which evidenced that employee stock owned companies laid off employees during the Great Recession at a rate of 2.6% whereas conventionally-owned companies laid off employees are a rate of 12.1%. He will note that the evidence shows that encouraging employee ownership is a successful jobs policy, and Congress should enhance these modest policies to boost employee ownership, which can also address the growing income gap between the working men and woman and the super-rich.
He will conclude his formal remarks with the comment that the growing income inequality is creating an us versus them atmosphere in the United States, which is not good for a democratic society with a republican form of government.
To read Mr. Keeling full statement, please visit The ESOP Association’s website. You can also read it here: Statement to Senate Small Business Committee Tax Roundtable.