Summary
Congress is looking at two new plans to give financial benefits to American workers. One plan would make big companies share profits with employees, while the other encourages stock distribution to lower-paid workers. These proposals aim to help reduce income inequality and boost worker earnings.
Key Facts
- A new law called the Employee Profit-Sharing Encouragement Act of 2025 proposes that large companies share profits with employees, offering at least 5% of annual net income as cash benefits.
- The act targets companies earning more than $25 million annually and plans to benefit about 65.4 million workers.
- Companies that do not follow this plan may lose tax deductions for executive pay.
- The SHARE Plan Act, a separate bipartisan proposal, encourages companies to give stock to lower-paid employees by offering a corporate tax rate cut.
- For the SHARE Plan, companies must give at least 5% of their stock to the lowest-paid 80% of employees to qualify for tax benefits.
- The SHARE Plan aims to distribute up to $4 trillion in stock to nearly 40 million workers, exempting these employees from income tax on the received stock.
