Reichert, Kind Encourage Creation of Employee-owned Businesses

Jun 11, 2014 Issues: Tax Policy

Washington, D.C. – Today, U.S. Congressmen and Ways and Means Members Dave Reichert (R-WA) and Ron Kind (D-WI), along with six other original cosponsors, introduced H.R. 4837, a bill to encourage the creation of employee-owned businesses through S Corporation Employee Stock Ownership Plans (S ESOPs).  S ESOPs are a proven tool for building strong, employee owned businesses and providing for sound retirement security for those employees. 

“This legislation gives employees ownership over their work and their retirement,” said Reichert.  “It is important that our nation’s workers feel confident that a financially secure future awaits them and there is no better way to do that than allow them a stake in their companies and provide meaningful retirement accounts.  Giving them this confidence can only help our economy, incentivizing workers and leading to economic grown and job creation.”

“This bill empowers companies to become employee-owned, create new employee-owners, and provide retirement security to more American workers,” said Kind.  “Growing our economy and adding jobs is a priority and employee-ownership is a proven model to do just that.”

H.R. 4837 includes provisions to encourage owners of S Corporations to sell their stock to an ESOP, exand financing opportunities for S Corporation ESOPs, provide technical assistance for companies that may be interested in forming an S Corporation ESOP, and ensure that small businesses that become ESOPs retain their Small Business Administration certification. Reps. Reichert and Kind are supported in their efforts by original cosponsors Reps. Paulsen (R-MN), Blumenauer (D-OR), Tiberi (R-OH), Neal (D-MA), Boustany (R-LA), and Pascrell (D-NJ).