The Hill News

In a recent tax reform hearing, Finance Committee Chairman Max Baucus (D-MT) noted that nearly 30 percent of all Americans in the workforce for 25 or more years have zero retirement savings. Meanwhile, Sen. Orrin Hatch (R-UT) noted that the average American will face over $200,000 in out-of-pocket post-retirement medical costs alone. “We should probably be expanding opportunities to save,” he said.
 
There is bipartisan agreement that too many Americans do not set aside sufficient resources to live comfortably in retirement. One needed policy response to this unfortunate situation would be to preserve and expand retirement programs through which many Americans save.  A useful structure is that of the S corporation employee stock ownership plan, or “S-ESOP,” which helps to generate billions of dollars in retirement savings each year for American workers. 

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