Sending Office: Honorable Bonnie Watson Coleman
Sent By:
Brad.Korten@mail.house.gov

        Request for Cosponsor(s)

Cosponsor H.R. 1294 – Employee Profit-Sharing Encouragement Act of 2019

Current Cosponsors: Ocasio-Cortez

 

Dear Colleague,

I invite you to cosponsor
H.R. 1294
, the Employee Profit-Sharing Encouragement Act of 2019, which would incentivize large companies to implement an employee profit-sharing plan.

This bill would require that any company that makes more than $25 million in earnings must establish an employee profit sharing plan to provide at least 5 percent of companies’ annual net income as a cash benefit for both full time and part time employees
who’ve been with the company for one year or more. Qualifying companies that fail to meet these requirements would be prohibited from deducting executive compensation expenses from their federal taxes.

This bill is narrowly tailored to cover only large businesses, exempting 99.7 percent of American companies to ensure no small businesses are held to an unmanageable standard. The remaining 0.3 percent of companies employ 51 percent of American workers –
meaning an estimated 65.4 million individuals would see their pay increase immediately under this legislation. The Employee Profit-Sharing Encouragement Act ensures fair treatment in profit sharing plans across all employees with provisions similar to the
rules already applied to 401(k) plans. Specifically, it requires the average amount of distributions to non-highly-compensated employees to remain in a reasonable range of distributions made to highly-compensated employees — preventing companies from gaming
the system by sharing more of their profits with the executives who already make the highest salaries.

Profit sharing plans are a win-win for both employers and workers alike. In addition to increasing real wages for employees, profit-sharing plans have also been proven to benefit the company. Recent data shows an increase in worker productivity of between
4-5% after implementation of a profit-sharing plan. The lack of worker-friendly policies has contributed to great wealth inequality.

Massive companies control a large amount of capital, yet many of their employees are living paycheck-by-paycheck with little-to-no financial security. We were told that the money that companies were to save from the Trump tax cuts were going to be reinvested
into the workers, but instead these companies have bought back a record $1.1 trillion of their own stock in the past year even as some of them have been cutting jobs. Our tax code is riddled with giveaways for corporations that they should be investing in
their workers – and since they’re unwilling to do so on their own, it’s time for Congress to step in for the people.

For more information on the legislation or if you would like to be included as a cosponsor, please contact Brad Korten (brad.korten@mail.house.gov) or call (202) 225-5801.

Sincerely,

 

 

BONNIE WATSON COLEMAN
Member of Congress

 

 

Related Legislative Issues

Selected legislative information: Economy, Labor, Taxes

icon eDC logo e-Dear Colleague version 2.0
 
e-Dear Colleagues are intended for internal House use only.