Chairman of Twin Cities-Based Company to Discuss Proposed Taxation Perils
at Tuesday News Conference in Washington, D.C.
WASHINGTON D.C., March 15 /PRNewswire/ -- David Copham, founder & chairman
of Liberty, the credit union movement's top provider of checks and marketing
services headquartered in Mounds View, is leading the fight against the
Clinton Administration's efforts to impose additional taxes on some types of
Employee Stock Ownership Plans (ESOPs).
Copham will lead a news conference tomorrow to discuss the pitfalls of a
proposal that would double tax the ESOPs of S corporations -- usually small,
often family-owned businesses. The news conference will be conducted Tuesday
(tomorrow), March 16 at the Capitol Hill Club's 3rd Floor Conference Room in
Washington, D.C. at 11 a.m. (10 a.m. Central).
Liberty became the first corporation of its kind to offer employee
ownership in January 1998. Until then, S corporations could not offer
employees an opportunity to invest in their own companies. Congress created
S corporations in 1954 to promote entrepreneurship. Congress passed a law in
1996 that allowed S corporation employees to purchase stock in their company.
In 1997 the law was adjusted to eliminate a punitive double tax on S
corporation ESOPs.
"The double-tax proposal is nothing short of disastrous," Copham said.
"In my estimation, the Administration's plan would force the closure of most,
if not all, S corporation ESOPs."
Copham said the proposal would make company contributions to ESOPs too
costly, reduce the stock plans' rate of return and defeat the notion of
long-term savings.
"As a consequence, many workers across America will suffer," Copham said.
"Their dream of owning a piece of their company may no longer be possible.
They also won't have an opportunity to save for the future, so they have a
pension when they retire.
"Congress passed legislation in 1997 to allow S corporation ESOPs to
encourage employee ownership. The change in the law has accomplished
Congress' intent. Now, the Administration is trying to reverse this goal."
Copham has been a long-time and diligent proponent of S corporation reform
and has worked to change federal laws to allow employee ownership. He
established Liberty in 1986 with three employees. The employee-owned company
now employs 625 people and provides checks, payment systems, business products
and marketing services to more than 4,200 credit unions in all 50 states, Guam
and Puerto Rico. Copham was named the Minnesota and Dakotas' Manufacturing
Entrepreneur of the Year in 1996.
SOURCE Liberty Check Printers
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Related links:
http://www.libertycheck.com
CONTACT:
Rick Foy, public relations manager of Liberty
Check Printers, 651-604-5436 or 800-607-2435, ext. 2436
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