Update on Proposal to Repeal 404(k) – Letter to the CBO
March 6, 2007

Last week we discussed the Congressional Budget Office ‘s (CBO) recommendation that Congress repeal Code Section 404(k). As a result, the ESOP Association sent a letter to Mr. G. Thomas Woodward, the Assistant Director for Tax Analysis for the CBO. The letter references a report by Steven F. Freeman of the University of Pennsylvania. The Employee Ownership Foundation commissioned the report to provide an independent look at the impact of the ESOPs. This report was also discussed in the latest Employee Ownership Update.