Suozzi and Chairman Kelly Introduce Bipartisan Bill to Re-Build the Middle Class

Washington, D.C.— Congressmen Tom Suozzi (D-NY), Ways and Means Member, and Mike Kelly (R-PA), Chair of the Ways and Means Subcommittee on Tax, introduced bipartisan legislation to build the middle class by increasing employee stock ownership.

This bipartisan bill is cosponsored by eleven Ways and Means Members, including Rep. Mike Thompson (D-CA), Ranking Member of the Ways and Means Subcommittee on Select Revenues, Rep. Brian Fitzpatrick (R-PA), Suozzi’s Co-Chair of the bipartisan Problem Solvers Caucus, and Reps. Larson (D-CT), Malliotakis (R-NY), Panetta (D-CA), Tenney (R-NY), Sewell (D-AL), Smucker (R-PA), and Horsford (D-NV).

The Share Holder Allocation for Rewards to Employees (SHARE) Plan Act rewards companies that distribute at least 5% of their stock to their lowest paid 80% of employees with a 3% reduction in their federal corporate income tax rate. This voluntary framework incentivizes more employee stock ownership, which is proven to improve employee productivity while translating to company profits.

 If fully implemented, $3-4 trillion in stock value would be transferred over time to almost 40 million middle and working-class Americans without creating any new government bureaucracy. Employees would be transformed from mere workers to actual stakeholders with stock equity in their companies, and companies would be rewarded for sharing that wealth.

 “Today, the top earning 10% of Americans hold 93% of all stock. Meanwhile, the lowest earning 50% own less than 1%. We need more Americans to own stock and have a stake in America’s growth and success. Let’s cut workers in on the deal,” said Rep. Tom Suozzi. “The SHARE Plan Act is a creative, common sense, concrete way to build wealth for the middle class and those aspiring to it. It helps build an ownership society, which is especially crucial with the rise of AI in the workplace, while incentivizing workers themselves to be more invested in their companies’ success.”

 “The SHARE Plan Act allows employees to have more skin in the game and receive a greater return on their hard work,” said Rep. Mike Kelly (R-PA). “Where I come from in western Pennsylvania, a paycheck is more than just a paycheck. It’s about the dignity of work. This legislation builds upon that belief as workers look toward retirement, as well.”

 “Ninety-three percent of Americans’ stock market wealth is held by the top ten percent of earners. While the wealthy get wealthier from investments, middle- and low-income Americans are left behind. This needs to change. That’s why I’m joining my colleagues to introduce the SHARE Plan to incentivize corporations to share opportunities to build wealth with all of their employees,” said Rep. Mike Thompson.

 “There is one factor which separates the rich from those of our citizens who rely on a salary only and live paycheck to paycheck--that is that the wealthy in our country own stock, usually the stock of the company they work for. The bottom 50% of American households own less than 1% of all stock. We need to change this,” said the plan’s author Robert Patricelli, founder and CEO of three national healthcare companies and former federal official in the Nixon and Ford Administrations.

 Companies would receive the tax rate reduction in any year in which they granted at least 1% of their stock or have cumulatively granted at least 5%. SHARE Plan distributions would be tax deductible for the company, and income from SHARE Plan stock grants would be tax exempt for employees.

 “We need to rebuild the middle class,” said Rep. Suozzi. “Hard work should be rewarded with enough money to buy a home, educate your children, pay for health insurance, and retire one day without being scared. The SHARE Plan Act will help restore the American Dream!”

 Click here for bill text.

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