The ESOP Association Submits Tax Reform Comments
The ESOP Association has submitted comments to the House Ways and Means Committee hearing on fundamental tax reform. The comments note suggest that the Committee should use the 1986 Tax Reform process as their model:
"The mark-ups were open to the public, which of course meant most in the grand Ways and Means Committee were lobbyists for the various interest that could be impacted by the legislation. Some interests had their views adopted; some did not; some obtained half a loaf. (That was the outcome for ESOPs by the way in the Committee.) But everyone was heard; everyone had a chance to explain their case. In other words, it was a fair process."
It also suggested how most privately held businesses are pass-thru entities and individual tax law need to be considered:
"But tax reform should be about individual tax rates and preferences for individuals as well. And my thought is, individual tax rates, and individual tax preferences are just as much about U.S. businesses as are C corporate tax rates. So, if you consider tax reform, don't just do corporate tax laws. Do the entire Code, as was done in the 1984-1986 time frame."
This is from the press release:
The ESOP Association submitted comments to the House Ways and Means Committee which held its first hearing on tax reform. The purpose of the hearing was to examine the Federal income tax code, understand the corporate tax structure, and look at ways to bring the tax code in line with other nations.
"The ESOP Association submitted comments to the Ways and Means Committee to emphasize that the ESOP community appreciates the need for comprehensive tax reform and that the Committee should model its work after the process that led to the 1986 Tax Reform law," stated Association President, J. Michael Keeling. He also noted that the process that led to the 1986 law was a near four year, deliberative, transparent process permitting all interests to have voice.
This follows the National Deficit Commission's release of their Final Deficit Reduction Plan.