Bill in Congress could reward companies that give employees stock
Bilateral invoice Introduced at the Congress this week, it will create a new tax incentive to distribute public companies to stock and file employees.
. New share ACT will give a 3 percent point reduction to large companies that distribute at least 5% of their stock to 80% of employees. Both Republicans and Democrats are supported by eleven members of the Committee of Tax Writing and Tools.
“As a result, 10% of the rich people in the country have 93% of the stocks in the United States, and the lowest 50% of the United States has a stock.” He said.
According to Suozzi, when fully applied, the allocation of shareholders for the prizes plan law for employees may lead to approximately 40 million middle -class Americans.
Suozzi said that the idea of work would have to dilute, export or take back their shares to distribute them to employees. However, the cost of this will be strictly balanced by 3% tax rate deduction.
“This is a big idea, Su said Suzzi. He continued: “Probably will result in the first dilution of stock prices, but it will result in an increase after receiving the tax rate reduction.”
He added that the new bill can also encourage employee loyalty, because more workers will keep shares in employing companies.
For companies with large market boundaries Amazon or WalmartSuozzi said that instead of giving 5%of the prizes more logical for the company, they could meet with a stock worth $ 250,000 per employee.
Lower tax rate can be used for companies in a year after at least 1% of stocks or after cumulative at least 5%. real page on the invoice.
The value of these distributions can be deducted from the tax for companies and the value of the stock given to each employee is not considered as part of the tax -purpose gross income for that person.
Suozzi said that the bilateral support for the draft law, the Republicans and Democrats, “how to come together to start attacking the problems we encounter,” he said.
“We need to expand the property society in our country, so that people who go to work every day can participate in the great success of this great country.” He said.
