In the News: Sharing Your ESOP Story with Your Member of Congress

Lampin Corp. (Uxbridge, MA)

Benefits of employee ownership pitched to Neal describes how Lampin Corp., a Uxbridge, MA manufacturer of precision-machined components, told their story to U.S. Rep. Richard E. Neal. During their on-site meeting, they took the time to express their concerns with the Rangel Proposal:

Chairman Scott Rossiter and others urged Neal to reconsider a small portion of proposed federal tax reform.

They said the measure would discourage managers from joining companies with ESOPs because of changes to how deferred compensation would be taxed.

Neal, D-2nd, sits on the House's powerful Ways and Means Committee, which oversees tax policy.

Neal said he did not want to overreach by promising the portion of the bill will be removed, but offered broad support for the ESOP arrangement.

"What I saw here today is people fully vested not only in management decisions, but in future growth," he said, adding, "I think people are becoming more and more cognizant of what retirement is going to look like and want more management of what retirement is going to look like."

The article also described ESOPs as "the perfect marriage of Democratic values and capitalism" because it "puts wealth in the pockets of working people" and discussed ESOPs vs. private equity:

Mackin also argued to Neal that ESOPs are a better alternative to private equity, which have fueled the buyout market in the past few years, because they encourage management and employees to cooperate.

On the topic of private equity, Neal added at the meeting that such firms will be another tax policy focus of his this year. He said taxes on private equity should be higher than the current 15 percent because "these guys are not taking a risk with their own money."

"The private equity battle is not over," he said. "That's only going to pick up steam."

For more information on how to contact your Member of Congress, The ESOP Association has an Advocacy Kit available on their website: Advocacy Kit 2007/2008 Winter Edition NOW AVAILABLE to Fight Anti S ESOP Proposal

Lampin Corp. was also mentioned in In the News: ESOPs Buying the Remaining Shares of the Company to Become 100% ESOP-Owned.