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This bill amends the Internal Revenue Code to deny employers a tax deduction for executive compensation unless they maintain profit-sharing distributions for employees. Employers meeting a gross receipts threshold must distribute at least 5 percent of net income to employees (including part-time workers employed for at least one year) through a written profit-sharing plan, or lose the ability to deduct compensation paid to highly compensated individuals. The requirement includes nondiscrimination safeguards and allows exceptions if distributions would jeopardize the employer's viability.
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