USA has the highest corporate tax rate in the world at 35%
Tax Policy - 100% tax credits in urban and rural enterprise zones [UEZs & REZs] and 50% tax credits in all other areas. Lending Policy - Incentivize banks via an interest exclusion of 50 percent to make “employee friendly” loans to corporations that want to set up ESOPS.
The USA presently has the highest corporate tax rate in the world at 35%. This is a completely counterproductive/anti completive tax that severely suppresses both employment and GDP growth. Moreover, it is avoided via a myriad of loopholes and/or passed on to consumers in the form of higher prices. It is a stupid way to try to raise revenue.
Direct incentive for employer: Either 50 percent, or 100 percent tax credit (for distressed areas) of the value of employer stock contributed to employees’ compensation. A contribution is made either directly or indirectly, such as to a trust or an ESOP, for eventual distribution to employees who now pay the tax on this new source of income.
It will take an aggressive, simple-to-understand offer of 100 percent tax credits in urban and rural enterprise zones [UEZs & REZs] and 50 percent tax credits in all other areas to get the kind of massive conversion to a system needed to change the social order for the better.
This is desperately needed to spur broad based property ownership (capital) to the middle class and lower classes. It will also encourage development in blighted neighborhoods through tax relief to entrepreneurs and investors who launch businesses in these areas. This will permanently improve the lives of the middle class and especially the underprivileged on a MASSIVE SCALE THROUGH THE PRECISELY FOCUSED AMAZING POWER OF CAPITALISM!
Profit Sharing: Companies could have the option of including a cash profit sharing plan as part of this tax credit not to exceed 50 percent of the total available tax credit.
Premise: Incentivize banks to make these kinds of “employee friendly” loans to corporations that want to set up ESOPS.
Interest exclusion of 50 percent: This provision in the original ESOP legislation allowed a bank or other financial institution to exclude 50 percent of the interest income on qualifying ESOP loans from the lender’s taxable income. The purpose of this provision was to greatly encourage banks and other lenders to make ESOP loans to facilitate the transfer of a portion of equity to workers.