This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Senator Sanders Questions Treasury Secretary Regarding ESOP Proposal In The President's 2014 Budget

WASHINGTON, April 22, 2013 /PRNewswire-USNewswire/ -- On April 15, 2013, The ESOP Association expressed dissatisfaction with President Obama's FY2014 Budget which contains a condemnation of employee ownership through an ESOP in any company with over $5 million in revenue. Such a view of ESOPs is a reversal of Executive Branch support of ESOPs, both Democratic and Republican, since 1975!

This blanket condemnation of ESOPs in companies with over $5 million in annual revenue is set forth as a justification in the FY2014 Administration budget proposal Greenbook for the repeal of a 1984 law permitting C corporations to take a tax deduction for the value of dividends paid on ESOP stock under certain terms and conditions. More information is here: http://www.esopassociation.org/news-landing/2013/04/10/the-esop-association-disappointed-with-esop-proposal-in-president-obama-s-budget.

Senator Barnard Sanders (I-VT), a long-time ESOP advocate and a member of the Senate Budget Committee, recently questioned the Treasury Secretary, Jacob J. Lew, regarding the Administration's view of ESOPs. He sent the question in writing on April 17, 2013 to Treasury Secretary Lew and has gone on the record asking the Administration to justify its position that only companies with 10 to 20 employees can benefit from employee ownership. This position disagrees with over 35 years of research that show ESOP companies, no matter what size, in the vast majority of instances, are more productive, more profitable, and provide locally-controlled, sustainable jobs. You can read Senator Sanders' question for the record here: http://www.esopassociation.org/docs/default-source/advocacy/here.pdf?sfvrsn=0

"The ESOP community should find the Administration's ESOP position shocking," said ESOP Association President, J. Michael Keeling. "Not only does it reverse almost 40 years of support for ESOPs, but also, it's counter-intuitive to eliminate an incentive for a policy that resulted in fewer layoffs during the Great Recession. It's baffling to hear the Administration preach about creating jobs and then off-handedly dismiss a proven policy that sustains jobs."

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

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,385.12 -31.73 -0.18%
S&P 500 2,013.18 -8.07 -0.40%
NASDAQ 4,692.53 +9.1230 0.19%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs