As a member of the Coalition to Protect Retirement (CPR), The ESOP Association recently signed on to a group letter that was sent to the Senate Finance Committee’s Savings and Investment Working Group. The letter commended the Finance Committee for their work to reform the tax code and noted that “Congress should encourage retirement savings for American workers though the preservation of current tax incentives.”
The mission of the CPR is to encourage and support retirement savings for American workers through the preservation of tax incentives critical to American workers’ retirement security. The Association is one of ten members of the Coalition.
In addition to the letter from the CPR, the Association, as a member of the Retirement Savings Network, signed on to another letter that will be sent to the Working Group on Savings and Investment as well. The letter notes that “Eliminating or diminishing the current tax treatment of employer-provided retirement plans and individual savings arrangements would jeopardize the retirement security of tens of millions of American workers, impact the role of retirement assets in the capital markets, and create challenges in maintaining the quality of life for future generations of retirees.”
As noted earlier on this blog, The ESOP Association also submitted comments to Senate Working Groups regarding comprehensive tax reform.
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.”