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July 25.2025

2 Minutes Read

New SHARE Act Incentivizes Companies to Distribute Stock to Employees

Confident man discussing tax strategies outside a government building.

Congress's SHARE Act: Aiming to Empower the Middle Class

In a bid to bridge the wealth gap in America, a new bipartisan bill known as the SHARE Act has been introduced by Representatives Tom Suozzi (D-N.Y.) and Mike Kelly (R-P.A.). This proposed legislation aims to incentivize companies to distribute stock to their rank-and-file employees, potentially transforming the fiscal landscape for millions of workers.

Tax Incentives for Stock Distribution

The SHARE Act offers a significant corporate tax reduction—by 3 percentage points—for public companies that allocate at least 5% of their stocks to the lowest-paid 80% of employees. This strategy serves dual purposes: it rewards companies financially while fostering a culture of ownership among employees.

Addressing Wealth Disparities

As reported by Suozzi, a staggering statistic reveals that in the United States, the wealthiest 10% own 93% of all stocks, while the bottom half of the population holds a mere 1%. This glaring disparity serves as the impetus behind the SHARE Act. If enacted, it could facilitate up to $4 trillion worth of stock being placed into the hands of nearly 40 million Americans.

The Financial Impact on Companies

While the redistribution of stock may initially cause companies to face dilution of shares, Suozzi argues that the overwhelming benefit of the tax cut will offset these costs, potentially leading to greater overall value creation for companies as a whole.

Future Implications for Employees and Companies

The SHARE Act is seen as a revolutionary idea that aligns the interests of employees and employers. Increased employee ownership may enhance workplace morale, fostering a sense of belonging and investment in the company's future among the workforce.

Take Action: Stay Informed on Tax Savings

As taxpayers and business owners, it's vital to stay abreast of such legislative changes. The SHARE Act represents a potential shift in how we think about employee compensation and equity. Engaging in tax planning now can help with savvy strategic tax deductions in the future. Follow this bill closely to understand how it may impact your tax responsibilities and opportunities to lower your taxes.

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