A pair of Senate proposals aimed at making it easier for startups to offer stock options and retirement benefits to their employees just cleared a big legislative hurdle.
The first proposal, The Empowering Employees through Stock Ownership Act, lets privately held companies defer their income tax on stock, thereby creating an incentive to offer stock options to people who work for them. The second proposal, an amendment to the 1986 IRS code, reduces duplicative filing costs for small businesses that want to offer employee retirement plans.
The Senate Finance Committee unanimously adopted both pieces of legislation today, clearing the way for a vote. The bipartisan bills were introduced by Senator Mark Warner, D-Va., and Sen. Susan Collins, R-Maine. The lawmakers say the legislation will help startups attract and keep talent.