Hillary Proposes Tax Credit For Businesses That Share Profits

Hillary Proposes Tax Credit For Businesses That Share Profits

by Amy Chozick at the NY Times

http://www.nytimes.com/politics/first-draft/2015/07/16/profit-sharing-makes-good-business-sense-hillary-clinton-says/?smprod=nytcore-iphone&smid=nytcore-iphone-share&_r=0

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Granting tax incentives to persuade corporations to share more of their profits with employees is one of the key ideas to emerge from Hillary Rodham Clinton’s recently announced economic agenda, which relies mostly on standard Democratic proposals to address stagnant middle-class wages and the overwhelming concentration of wealth among the richest Americans.

Mrs. Clinton made profit-sharing a centerpiece of the economic platform she unveiled in New York on Monday. On Thursday, she pitched the idea to potential voters in Dover, N.H., at the first town-hall-style event of her campaign. “It makes good business sense,” she told the crowd, citing a local company that shared profits with workers. “This increases productivity, it increases loyalty to employees, it gives you a bond with employees.”

The “rising incomes, sharing profits” tax credit Mrs. Clinton is proposing would give companies a two-year tax credit equivalent to 15 percent of profits distributed to employees, to be capped at 10 percent of wages. The credits would cost an estimated $10 billion to $20 billion over 10 years and would be paid for by closing corporate tax loopholes. If a company provided an employee earning $50,000 annually with a $5,000 profit-sharing payment, for example, that company would receive a $750 tax credit in return.

“We need to get businesses back looking after their employees and their customers and their country, not just their executives and their shareholders,” Mrs. Clinton said.




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