Thursday, July 16, 2015

A Clinton Plan I Agree With: Tax Breaks for Profit Sharing

I think this is a great idea that would seriously resonate with certain companies.
Her plan would give businesses that offer employees a share of profits a two-year tax credit equal to at least 15 percent of their profit-sharing payments.

If a company took full advantage of Clinton's profit-sharing tax credit, an employee earning $50,000 per year, for instance, could receive $5,000 in added income, and the company in turn would get a $750 tax credit for that worker.
Even if the company offered everyone common shares of their stock it would create a whole new class of investor. Imagine if every barista at Starbucks received a certain amount of shares in their paycheck each quarter and Starbucks got a tax break because of it. Some long time Starbucks workers might be able to have a decent amount of shares and some pretty nice portfolios due to growth at the company. 

Also the idea of shared success would be on the minds of quite a few workers. If they work hard, the stock price rises, and if the stock price rises, they create wealth. This doesn't only apply to the top managers or white collar workers but to everyone at the company. Sounds like a game-changer.

No comments: