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Increased Company Profit-Sharing for Employees

This bill aims to encourage companies to share profits with their employees. Companies that do not distribute profit-sharing to employees may lose the ability to deduct executive compensation from their taxes. This could potentially increase employee income and promote a fairer distribution of profits.
Key points
Companies that do not share profits with employees may lose tax deductions for executive salaries.
Employees, including part-time staff employed for at least one year, may receive cash profit distributions.
Profit distributions must be at least 5% of the company's net income for the company to qualify for tax deductions.
There is an exception for companies that can prove profit distribution would jeopardize their continued operation.
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Status:
Expired
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Additional Information
Print number: 118_HR_2628
Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12]
Process start date: 2023-04-13
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Employee Profit-Sharing Encouragement Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2628.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-04-13.

What are the main provisions?

Key points include:

  • Companies that do not share profits with employees may lose tax deductions for executive salaries.
  • Employees, including part-time staff employed for at least one year, may receive cash profit distributions.
  • Profit distributions must be at least 5% of the company's net income for the company to qualify for tax deductions.
  • There is an exception for companies that can prove profit distribution would jeopardize their continued operation.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Watson Coleman, Bonnie [D-NJ-12].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

What is the impact of this bill?

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge.

CATEGORIES

Taxes Labor Economy