Presented to a roundtable sponsored by the U.S. Senate Committee on Small Business and Entrepreneurship. Excerpt: "In terms of ... [tax code] provisions that ... should be seriously considered, here are a few ...: [1] An S corporation like a C corporation should be able to pay 'dividends' in cash to employees in the ESOP, and the employees of course would pay tax at that time to Uncle Sam on the dividends; [2] Congress basically repealed in 1989, a law adopted in 1984 that encouraged lenders to make loans to create ESOPs, by permitting the lender to exclude 50% of its interest income from its income; [3] There was for a time a variety of tax laws that encouraged estate planning of owners of private businesses to pass along in their wills ownership to the ESOP, and the ESOP would take on the responsibility for paying the estate tax."  MORE >>