In a move aimed at reshaping corporate America’s wealth distribution model, a bipartisan group of U.S. lawmakers has introduced the SHARE Act, a landmark bill that would incentivize public companies to distribute ownership stakes to their rank-and-file employees in exchange for corporate tax relief.
The proposal, officially named the Shareholder Allocation for Rewards to Employees (SHARE) Plan Act, was introduced this week in Congress by Rep. Tom Suozzi (D-N.Y.) and co-sponsored by 11 members of the tax-writing House Ways and Means Committee from both parties.
If passed, the bill would offer a 3 percentage point corporate tax rate reduction to companies that allocate at least 5% of their outstanding shares to the lowest-paid 80% of their workforce. The tax discount would be available either in a year when a company distributes at least 1% of its stock or once it has cumulatively reached the 5% threshold.
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“This is a big idea,” Suozzi said in an interview on CNBC’s Squawk Box. “The bottom line is that right now in America, the top 10% of wealthy people own 93% of the stock. The lowest 50% of people own just 1% of the stock. We need to change that.”
A $4 Trillion Ownership Shift
According to Suozzi, the bill has the potential to transfer nearly $4 trillion in stock value to approximately 40 million middle-class American workers once fully implemented. The bill targets a longstanding concern in the U.S. economy—namely, the stark gap in wealth and stock ownership between the corporate elite and the general workforce.
“It’ll result in some initial dilution of their share price, probably, but once they get the tax rate discount, it’ll result in an increase,” Suozzi said.
Companies would be allowed to issue new shares, buy back stock, or dilute current holdings to meet the requirement. Though such moves could cause short-term share price dilution, Suozzi argues the tax cut would not only offset those costs but ultimately enhance the company’s value.
For massive corporations like Amazon, Walmart, and others with large market caps, the bill provides a flexibility clause: the per-employee award can be capped at $250,000 worth of stock, allowing companies to meet the percentage requirement without overly generous individual awards.
Beyond tax savings, the SHARE Act is seen as a way to bolster employee loyalty and productivity, as more workers become stakeholders in the firms that employ them. With a tangible interest in the company’s performance, lawmakers believe employees may be more motivated, leading to longer tenures and improved morale.
The bill also includes tax benefits for employees: the stock received would not count toward gross income for tax purposes, effectively shielding workers from potential IRS burdens tied to the award. At the same time, companies would be able to deduct the value of distributed shares, adding to the financial appeal of the scheme.
A New Ownership Society?
Suozzi framed the legislation as part of a broader push to expand the “ownership society” in the U.S., a concept that envisions more Americans holding equity in the economy they help to build.
“We need to expand the ownership society in our country so that people who go to work every day can participate in the great success of this great country,” he said.
With rare bipartisan momentum, the SHARE Act arrives at a time when both parties are under increasing pressure to offer substantive reforms that address wealth inequality and the concentration of corporate power. Whether it gains enough traction to become law remains to be seen, but lawmakers on both sides say it’s a promising step in tackling America’s wealth imbalance from inside corporate boardrooms.