Employee Profit-Sharing Encouragement Act of 2023

Hozzl · 2023-12-15T15:56:56Z

Explore the details of House Bill 2628 Employee Profit-Sharing Encouragement Act of 2023 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on Taxation. Stay informed on legislative developments.

12/15/2023, 3:56 PM

Summary of Bill HR 2628

Bill 118 HR 2628, also known as the Employee Profit-Sharing Encouragement Act of 2023, aims to incentivize companies to offer profit-sharing programs to their employees. The bill was introduced in the House of Representatives in the year 2023.

The main goal of this legislation is to promote economic growth and increase employee engagement by encouraging businesses to share their profits with their workers. By providing employees with a stake in the success of the company, it is believed that they will be more motivated to work hard and contribute to the overall success of the business.

The bill includes provisions that would provide tax incentives to companies that offer profit-sharing programs to their employees. These incentives would help offset the costs associated with implementing such programs and make it more attractive for businesses to adopt profit-sharing arrangements. Additionally, the bill includes measures to increase transparency and accountability in profit-sharing programs, ensuring that employees are informed about how the program works and how they can benefit from it. This is intended to protect workers and ensure that they receive their fair share of the profits generated by the company. Overall, the Employee Profit-Sharing Encouragement Act of 2023 seeks to promote a more equitable distribution of wealth within companies and encourage businesses to invest in their employees. It is hoped that this legislation will lead to increased employee satisfaction, improved productivity, and ultimately, a stronger economy.

Congressional Summary of HR 2628

Employee Profit-Sharing Encouragement Act of 2023

This bill denies the business tax deduction for the remuneration of highly-compensated corporate employees unless the corporation has average annual gross receipts of less than $25 million and maintains a plan for making qualified profit-sharing distributions to its employees. The bill defines qualified profit-sharing distributions as cash distributions under a written employer plan that gives employees who have been employed for at least one year a right to profit-sharing distributions and bases the amount of such distributions on the measure of the receipts, profit, revenues, or earnings of the employer.

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Current Status of Bill HR 2628

Bill HR 2628 is currently in the status of Bill Introduced since April 13, 2023. Bill HR 2628 was introduced during Congress 118 and was introduced to the House on April 13, 2023. Bill HR 2628's most recent activity was Referred to the House Committee on Ways and Means. as of April 13, 2023

Bipartisan Support of Bill HR 2628

Total Number of Sponsors

Democrat Sponsors

Republican Sponsors

Unaffiliated Sponsors

Total Number of Cosponsors

Democrat Cosponsors

Republican Cosponsors

Unaffiliated Cosponsors

Policy Area and Potential Impact of Bill HR 2628

Primary Policy Focus

Taxation

Alternate Title(s) of Bill HR 2628

Employee Profit-Sharing Encouragement Act of 2023

To amend the Internal Revenue Code of 1986 to deny the deduction for executive compensation unless the employer maintains profit-sharing distributions for employees.