Budget Calls for Tax Increases of $1.1 Trillion over Next 10 Years discusses the ESOP Association's position on the new budget proposal, warning that the ESOP community needs to be sharing the Benefits of ESOPs and making the case at the local level:

The ESOP Association has been consistent over the past two years noting that the ballooning deficit would lead to the same scenario we saw in the 80s. Beginning in 1982, Congress passed and Presidents Reagan, Bush, and then Clinton, signed into law new tax increases. The overwhelming majority of these tax increases were called "loophole closers." And we cannot forget that for many cynics of ESOPs who hold important positions on Congressional staffs, and in the Administration, all ESOP tax incentives are "loopholes" at worse, and wasteful tax expenditures are best.

So while we can be pleased that this recently released budget by President Obama does not propose any change in laws impacting ESOPs, it should be noted that it calls for tax increases equaling $1.1 trillion over 10 years. Some of the proposals are very controversial, and they will be rejected by the House Ways and Means Committee and the Senate Finance Committee. For each tax increase proposal rejected, or if you prefer revenue raiser or loophole closer, the Committees will look at other ways to increase taxes by going after tax preferences, loopholes, etc. In the 80s, that act of looking for something else often led a tax committee member to be persuaded by professional staff to put a negative ESOP tax proposal forward to "pay for" rejecting another tax revenue raising proposal. And of course, next year there will be an additional set of revenue raisers proposed.