The ESOP Association sent out the following release today regarding President Obama’s Fiscal Year 2016 budget.
For Immediate Release: February 2, 2015
Once More, Administration Takes Aim at Employee Ownership
February 2, 2015 (Washington, DC) – Today, The ESOP Association expressed disappointment once more over a provision in President Obama’s Fiscal Year 2016 budget that pertains to employee stock ownership plans (ESOPs). Included in the budget document is a provision to ‘eliminate deduction for dividends on stock of publicly-traded corporations held in ESOPs’ paid to ESOP participants.
“The Administration’s proposal is puzzling to the ESOP community. On one hand, the Administration goes out of its way to tout the work it’s doing to benefit average income employees, yet, the one policy on the books that encourages employers to provide additional income to employees is slated to be cut,” said ESOP Association President, J. Michael Keeling. “The roots of the employee ownership movement position it squarely as a second income plan. It’s been retained by Congress since 1984 to address income inequality by encouraging employee owners to have more income from ownership. The Administration needs to step up and 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, not decrease support.”
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.