Posted on 07/16/2015 11:02:34 AM PDT by Olog-hai
Democratic presidential candidate Hillary Rodham Clinton is proposing new incentives to encourage corporations to share profits with workers.
Her plan is to give businesses that offer employees a share of profits a two-year tax credit equal to at least 15 percent of their profit-sharing payments.
The plan would exclude high-income workers and firms where only a small percentage of employees benefit. …
(Excerpt) Read more at hosted.ap.org ...
LOL. The Clinton’s already have a government benefit program for corporate profit sharing — if corporations give money to Bill and Hillary, they get government benefits.
Better idea: Flat tax.
She do anything to destroy U. S. Business infrastructure.
This will sound great on paper, but by the time she and the Democrats and the wimps in the Republican camp are done, it will be another structured noose around the next of business interests.
Where does she think those profits go? They get re-invested and paid out the share holders.
What happens when there is less re-invested and share holders make less?
China is what happens.
FU HRC and the sap you rode in on.
Just another way of taking and redistributing our tax dollars as the federales see fit, ie, socialist Marxism. Like Obama and Kerry, Clinton never met a commie she didn’t like.
There is a simple way to do that .... allow dividends paid to share holders to be deducted as an expense to the business and taxed as regular income to shareholders.
Just like dividends to shareholders.
Nearly 30 years ago I wrote to the WSJ about the issue of profit-sharing bonuses for workers being the better idea over granting stock to employees. Thanks to the 1987 Crash most of those stock awards ended up being worth far less than the cash bonus would be. I had mentioned targeting Return on Equity and if the ROE exceeded a target rate the workers would share in the excess. That would make it limited to those companies that were truly well run.
Of all the policies coming out of the Left on income equality this is the one that makes the most sense, besides increasing the earned-income tax credit. I only wish our side had the balls to have produced this.
He proposes comprehensive tax advantages for companies to do profit sharing, with no phony time limit, and no limits for small business.
Check and mate.
Corporations already have a profit sharing plan, you buy stock in the company you get a share of their profits...
Jim, I love you and the web site and have been here 15 years but you are really shooting from the hip on this one. Look at the details of the proposal, it is as far off from your comment as can be.
Many companies will share their profits with you. All you have to do is buy stock and they pay you dividends.
How about ‘shadow stock’ ?
Well said. This proposal really just exposes how Hillary and many liberals just don’t understand how the business world works.
“Where does she think those profits go? They get re-invested and paid out the share holders.”
No, they’re not:
Once you “share” it with employees it’s not profit anymore. What she’s really saying is taxes should be based on the percentage of gross income allocated to labor costs. This type of social engineering never, ever works.
bttt
Thanks, but I prefer the government abiding by the constitution.
Of course, it is a wash to the IRS, because the employees will just get bumped into a higher bracket, thanks to their little bonuses.
Why is it that folks can always understand when private businesses have to spend more, they can’t afford to hire as many employees, but when it comes to corporations they’re seemingly expected to work by a different set of economic principles?
Demand that corporations spend more of their profits, and they will do several things. They will hire fewer people. They will cut other benefits. They will move as much of their operation off shore as they can.
Not only does this idea go against basic economic principles, it involves the government in the mix too. Not only do you damage the business, you increase government spending.
What, we can’t spend enough as a nation? Really?
LRoggy, I’m sorry but you’re way off base IMO.
At a time when we have 40 million plus out of work, you’re looking for a way to make it tougher on a business.
Yikes.
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