Ownership America is pleased to release our inaugural publication Turning Employees into Owners: Rebuilding the American Dream”. The publication surveys a number of federal policy opportunities to scale employee ownership with a particular emphasis on the Employee Stock Ownership Plan (ESOP) model. An Appendix expands the focus to include worker cooperatives, employee stock purchase plans, and broad-based equity sharing.
The roster of policy proposals explored in the publication includes:
- The Employee Equity Investment Act (formerly known as the Employee Equity Loan Act), which is a federal loan guarantee proposal to create, grow, and sustain employee ownership in the middle market sector of the American economy using the SBA’s existing Small Business Investment Company (SBIC) as a program template
- Tax incentives to promote employee ownership conversions in the context of private equity transactions and corporate divestitures
- Reforms to Opportunity Zones that would facilitate the qualification ESOP transactions
- Making government benefits enjoyed by corporations contingent on a partial ESOP formation and/or broad-based equity sharing program
- In publicly traded companies, support for employee stock purchase plans, possibly through a tax deduction for companies that “seed” the programs
- An exploration of private-sector initiatives such as revolving loan funds