ESCA Conference Addresses Key Issues for S ESOPs
Author: Cara Benningfield
Employee-Owned S Corporations of America (ESCA) recently held its 2015 Federal Policy Conference & Lobby Day in Washington, D.C. The conference was attended by more than 160 ESCA members, guests and employee-owners and covered a number of new and ongoing topics important to S ESOP companies and their employee-owners.
The guest speaker at the opening session was House Majority Leader Kevin McCarthy, R-Calif., who credited the S ESOP structure for “incredibly low loan default rates, billions of dollars in distributions and the ability to weather economic downturns better than non-S ESOP companies.”
ESCA President and Executive Director Stephanie Silverman also gave a political update and shared her outlook on the current environment in Washington. Stephanie indicated Congress has many critical issues on its agenda, and the upcoming presidential election makes it unlikely Congress will address tax reform any time soon. However, given current budgetary issues, ESOP-owned companies should remain proactive and continue to communicate with members of Congress regarding the benefits of S ESOPs to businesses and their employees.
During the conference, more than 130 congressional office visits were conducted on Capitol Hill, during which employee-owners advocated for the S ESOP protection and promotion bill. They also shared information with members of Congress about how S ESOPs have affected retirement savings and job creation in their communities.
While employee-owners were visiting members of Congress, professional members met with officials from the Department of Labor, Department of Treasury and IRS. They discussed a variety of hot topics, focusing on current regulatory issues and challenges unique to S ESOPs.
For more information on issues affecting S ESOPs, contact your BKD advisor.