Hillary Clinton has unveiled a "profit sharing" tax plan. The details of the plan have been published on her website.
"Clinton’s Plan for a Profit Sharing Tax Credit," the headline of the item on Clinton's website reads.
Hillary Clinton believes the central economic challenge in America today is achieving stronger and steadier income growth. While corporate profits are near record highs, everyday Americans' paychecks have barely budged in real terms. Clinton's vision for the country’s economic future prioritizes a rise in incomes for hard-working Americans so they can afford a middle-class life.
Today in New Hampshire, Clinton outlined one idea to address this key challenge: encouraging companies to share their profits with American workers. She outlined a key proposal to give workers the chance to share in the profits they help produce.
A Win-Win: Profit Sharing Is Good for Workers and Good for Business
Under profit-sharing arrangements, companies agree to distribute to workers a specified share of business profits. There is strong evidence that profit sharing is a win-win for both workers and business:
Profit sharing gives workers a stake in the company. Under profit-sharing arrangements, when a company does well, the workers share in the gains they helped produce. So when corporations see the type of near-record profits they have recently, not only would the executives and shareholders do well – the workers would too.
Profit sharing increases worker pay. Evidence shows that profit-sharing arrangements are linked with higher pay. If a worker is enrolled in a good profit-sharing plan, that could mean a raise of thousands of dollars.1
For example, Professors Richard Freeman, Joseph Blasi, and Douglas Kruse of Harvard and Rutgers find "strong evidence" that profit sharing has "meaningful impacts on workers' wealth" because "[w]orkers with profit sharing or employee stock ownership are higher paid and have more benefits than other workers."2
Profit sharing makes businesses more productive and innovative. Studies find that profit-sharing plans on the whole result in increased business productivity and innovation.3 This makes sense: when employees share in profits, they have a stronger stake in the company's success.
Profit sharing improves the workplace. Profit sharing has also been associated with other improvements in the workplace – including better employee training, lower employee turnover, and increased employee participation in decision-making.4 In fact, evidence suggests that profit-sharing leads workers to be more satisfied with their jobs overall.
Today, Clinton Outlined Her "Rising Incomes, Sharing Profits" Tax Credit
Expanding profit-sharing – by offering incentives to help businesses cover the initial costs of setting up a plan and overcome the inertia of a "business as usual" mentality – would be a win-win for America's workers and businesses. Clinton would encourage companies to share profits by offering them a tax credit for sharing profits with employees.
Award a two-year tax credit to companies that share profits with their employees. Under Clinton's plan, companies that share profits with their employees would receive a two-year tax credit equal to 15 percent of the profits they share – with a higher credit for small businesses. Shared profits eligible for the credit would be capped at 10 percent on top of employees' current wages. This would help companies overcome any initial costs of setting up a profit sharing plan. After two years, companies that have established profit sharing plans and enjoyed the benefits of them would no longer need the credit to sustain the plans.
Target the workers and businesses that need profit sharing the most. The tax credit would phase out for higher-income workers, and it would only be available to firms that share profits widely among employees. Moreover, the benefit for any single company in a given year would be capped to prevent an excessive credit for very large corporations.
Work with business, labor and other stakeholders to tailor the specific dimensions of the credit. Clinton believes broad engagement should help shape the precise elements of the credit. That's why, as president, she would direct her Treasury Secretary to convene small businesses and corporate leaders, labor leaders and other stakeholders to determine, among other things, the characteristics of qualifying profit-sharing arrangements and to develop protections against abuses – such as stopping companies from limiting or gaming wages and benefits to get the tax credit.
Be fiscally responsible. The overall cost of the tax credit is expected to be roughly 20 billion over the ten-year budget window and will be fully paid for through the closure of tax loopholes that she will identify as part of the comprehensive agenda that Clinton will introduce in the weeks and months ahead. This investment will create a significant boost to the economy by putting more money in the pockets of millions of working Americans.
Clinton's "Rising Incomes, Sharing Profits" Tax Credit represents exactly the kind of common-sense solutions that she will offer as President. And Clinton will continue to consult with private sector leaders, labor leaders, experts, and other stakeholders, and propose additional ideas on profit-sharing over the course of the campaign.
Justice Anthony Kennedy, while dictating one of the most sweeping social changes in history in his opinion in the Obergefell v. Hodges case that legalized same-sex marriage across America, waxes magnanimous towards foes of the expansion of the millennia-old definition of marriage.
Republican House majority leader Kevin McCarthy is dubbing the third week of June “health care week.” It is then the House of Representatives will bring up a series of health care-related bills as the Supreme Court prepares to issue its ruling on a major provision of the Affordable Care Act at the end of the month.
Bill Clinton is blaming the Clinton Foundation's accountants for not disclosing the acceptance of foreign donations on tax documents filed with the I.R.S. The former president made the comments in an interview with NBC:
"There was no attempt to hide them," Clinton said. "The guy that filled out the forms made an error. It's not like we didn't tell everybody who gave us the money. The guy put it on the wrong form."
The Clinton Foundation is now admitting that mistakes were made. "[Y]es, we made mistakes, as many organizations of our size do, but we are acting quickly to remedy them, and have taken steps to ensure they don't happen in the future.
The Daily Beast’s Michael Tomasky is celebrating this April 15 by declaring that America is “the most undertaxed advanced country in the world.” He claims that this chart offers proof of his assertion.
In response to this post, several readers have accurately pointed out that a page of the IRS website, posted on March 25, clearly states that, “If you are not required to file a tax return and don’t want to file a return, you do not need to file
UPDATE: Several readers have accurately pointed out that a page of the IRS website posted on March 25 clearly states that “If you are not required to file a tax return and don’t want to file a return, you do not need to file a return solely to claim this exemption.”
Given that Obamacare’s supporters like to take the Congressional Budget Office’s overly optimistic scoring of the president’s signature legislation as gospel, it’s fun to look at how poorly Obamacare is actually doing in relation to earlier CBO projections. When the Democrats rammed Obamacare through Congress in 2010 without a single Republican vote, the CBO said that the unpopular overhaul would lead to a net increase of 26 million people with health insurance by 2015 (15 million through Medicaid plus 13 million through the Obamacare exchanges minus 2 million who would otherwise have had private insurance but wouldn’t because of Obamacare).
Senator Ben Sasse has introduced a law to eliminate the amnesty tax bonuses, according to a press release from his office.
“Presidents should enforce the laws—not unilaterally rewrite them—and it’s time for Congress to hold this Administration accountable,” Sasse says in a statement. “By preventing this Administration from issuing new Social Security Numbers to illegal aliens, the ABE Act would help restore the rule of law and save taxpayers billions of dollars.”