Senate Bill Would Boost Employee Business Ownerships

Wednesday, 07 Sep 2011 12:03 PM

By Greg McDonald

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Three members of the Senate Finance Committee have introduced a bipartisan bill to expand employee ownerships of private businesses, a goal they say could help create more jobs and spur more economic activity.
 
The bill, introduced by Democrat Ben Cardin of Maryland and Republicans Pat Roberts of Kansas and Olympia Snowe of Maine, is designed to eliminate some barriers that companies and their owners now face in establishing single-tax corporations, or S corporations, with employee stock-ownership plans (ESOP).
 
According to some studies, ESOP companies return more on retirement savings, have an easier time accessing capital, and tend to weather downturns in the economy better than most businesses.
 
The senators said their bill, the Promotion and Expansion of Private Ownership Act of 2011, would allow more S corporations to expand or transfer full ownership to their employees. A similar bill has been introduced in the House and is co-sponsored by 18 Democrats and 18 Republicans.
 
“S ESOPs have proven resilient even in tough times — hiring new workers as other firms were shrinking — while also providing an effective means of retirement savings for their workers,” said Cardin. “We need to preserve and expand this structure to enable more businesses to grow and to allow their employees to accrue these valuable benefits.”

“This legislation supports a simple but powerful premise: when employees own the company, they operate with a vested interest in its success, and that in turn generates tremendous returns for the company, the community, and the economy,” added Roberts.

© 2014 Newsmax. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Send me more news as it happens.
 
 
Get me on The Wire
Send me more news as it happens.
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

Cambodia HIV Outbreak: 100-Plus People Diagnosed; Investigation Sought

Friday, 19 Dec 2014 18:50 PM

More than 100 HIV infections in a single Cambodian village have spurred the country's prime minister to ask for an inves . . .

Slender Man Case: Two Girls Competent to Stand Trial in Stabbing

Friday, 19 Dec 2014 18:26 PM

Two girls who allegedly stabbed a 12-year-old friend over the online game Slender Man are competent to stand trial for a . . .

Kate Upton Sexiest Woman Alive; Model Apologizes to Teen Brother

Friday, 19 Dec 2014 17:52 PM

Model Kate Upton was selected as People magazine's first Sexiest Woman Alive, a month after Chris Hemsworth received the . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved