New Bipartisan Bill Would Cut Corporate Taxes for Companies That Share Stock with Workers

Sophia Reyes · July 25, 2025 1:33 PM

A new bipartisan bill introduced in Congress aims to strengthen the middle class by encouraging large companies to share ownership with lower-paid employees.

The SHARE Act, introduced by Rep. Tom Suozzi (D-N.Y.) and Rep. Mike Kelly (R-Pa.), would offer a 3 percentage point corporate tax cut to public companies that allocate at least 5% of their stock to the lowest-paid 80% of employees. Eleven members of the House Ways and Means Committee — from both parties — have co-sponsored the proposal.

“The bottom line is that right now in America, the top 10% of wealthy people in the country own 93% of the stock, and the lowest 50% people in the United States of America own 1% of the stock,” Suozzi said Friday on CNBC’s Squawk Box.

The SHARE (Share Holder Allocation for Rewards to Employees) Plan Act could ultimately transfer up to $4 trillion in stock value to nearly 40 million middle-class Americans, Suozzi said.

For participating companies, the shift would likely require issuing, buying back, or diluting shares. But Suozzi argued the benefits of the tax break would outweigh the cost.

“It’s a big idea,” Suozzi said. “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.”

The proposal could also boost retention, Suozzi noted, as employees gain a financial stake in the success of their employers.

For mega-cap companies like Amazon or Walmart, there’s flexibility built in. Rather than allocating a full 5% of equity, companies could cap individual awards at $250,000 per employee — whichever is more feasible.

According to the bill’s summary, the tax incentive would be available in any year that a company distributes at least 1% of its stock, or once cumulative awards hit 5%. Companies would be able to deduct the value of the stock for tax purposes, and employees wouldn’t be taxed on the stock received.

“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,” Suozzi said, adding that bipartisan backing shows lawmakers are ready to shift focus.

“Stop attacking each other and start attacking the problems that we face.”