Us Congress House Bill HB2527

Us Congress 2023-2024 Regular Session

• Introduced: 4/6/23
• Refer: 4/6/23

Caption

RAISE Act of 2023 Rewarding American Investments to Support Employees Act of 2023

Impact

The proposed wage credit would apply to employers regardless of size who choose to increase their employees' wages above previous levels. The limit for the credit is set at $500,000 per employer per year, which is aimed at providing significant benefits particularly to smaller businesses as they recover from economic impacts. Moreover, the bill defines 'specified employees' as those earning less than $75,000 annually, encouraging businesses to raise wages for lower-paid workers, thereby enhancing overall workforce morale and retaining talent.

Summary

House Bill 2527, known as the 'Rewarding American Investments to Support Employees Act of 2023' (RAISE Act), proposes to amend the Internal Revenue Code of 1986 by introducing an employer wage credit to incentivize businesses to increase employee wages. This legislation is structured to support employers financially, allowing them to claim a credit equal to 10% of the excess wages paid to qualifying employees over the previous year. Importantly, this represents a significant step towards enhancing employee compensation in the wake of economic uncertainties.

Contention

While the bill has garnered support for its potential to stimulate wage growth, it also faces scrutiny concerning its fiscal implications. Critics of the bill raise concerns that providing tax credits may create budgetary pressures or be misallocated without effective oversight. Furthermore, the limitation of credits to specific employee wage increases rather than a broader approach could be viewed as restrictive by some stakeholders in the business community. These discussions underline the complexity of legislative efforts to balance economic growth and responsible fiscal management.