The American Prosperity and Fair Trade Act of 2024

sjp4434 · November 10, 2024, 5:18pm

Preamble:
A Bill to Promote Fair Competition, Protect the American Dream, and Reinforce Responsible Corporate Growth

The strength of the American economy has always relied on the success of American businesses—businesses that create jobs, drive innovation, and deliver high-quality goods and services to American consumers. But today, the American Dream is under threat. Corporate greed and monopolistic practices are inflating prices, sending jobs overseas, and making it harder for everyday Americans to get ahead.

This bill aims to restore balance to our economy by ensuring that businesses play their part in keeping prices fair, creating American jobs, and investing in American infrastructure. By curbing excessive profits and preventing monopolies, we can ensure that the benefits of economic growth are shared by all, not just a select few at the top.

At the same time, this bill will take the wealth generated by corporate success and put it to work for the American people. The penalties collected from companies that go beyond reasonable profit margins will fund essential investments in our infrastructure, cybersecurity, and energy systems, ensuring that America remains strong and competitive for generations to come.

It’s time for corporate America to do its part, and for the American people to benefit from the prosperity they help create.

Now, therefore, be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, as follows:

Section 1: Industry-Specific Corporate Profit Caps
Corporate Profit Caps by Industry This section establishes profit caps to ensure that American businesses remain profitable, competitive, and responsible. Excessive profits above these caps will be penalized, and funds collected from these penalties will be used to support the American people via direct stipends, infrastructure investment, and the protection of national security.

High-Profit Industries (Technology, Pharmaceuticals, Financial Services)

These industries have high profit margins due to intellectual property, innovation, and market dominance. Companies that benefit from these factors should be incentivized to reinvest in America, ensuring consumer prices remain reasonable while maintaining innovation.

Profit Cap: 15% This cap is designed to prevent excessive profiteering, allowing companies to earn reasonable profits while ensuring that the benefits of innovation are shared with American consumers.
Penalty for Excessive Profits: Any profits above 20% will be taxed at an additional 35%. Revenue from penalties will be allocated to the National Infrastructure Fund, Security and Cybersecurity Fund, and a Consumer Relief Stipend for the American people.
Incentives for U.S. Investment:
- Companies that keep manufacturing and R&D operations in the U.S. will be eligible for significant tax cuts (up to 15%) on U.S.-based operations.
- Tax breaks for any company that increases U.S. employment in R&D, manufacturing, or technical operations, such as a 5-year tax holiday for every new U.S. job created in these sectors.

Consumer Goods and Retail (Walmart, Amazon, Procter & Gamble)

These companies benefit from large-scale operations and have substantial market power. While their profit margins are typically lower than tech companies, they are still capable of inflating prices disproportionately. Therefore, it is important to ensure that prices remain reasonable for consumers.

Profit Cap: 10-15% The 10-15% profit margin ensures that large-scale retailers can operate efficiently while keeping consumer costs manageable.
Penalty for Excessive Profits: Any profits exceeding 15% will be taxed at 30% on excess profits.
Incentives for Keeping Jobs in America:
- Retailers that retain or expand domestic manufacturing will receive tax cuts up to 20% of capital investment in U.S.-based facilities.
- Companies that stabilize prices and limit price increases to inflation will be eligible for a 5% tax credit on all U.S. wages, encouraging businesses to pass savings on to consumers.

Hospitality and Entertainment (Hotels, Airlines, Movie Studios)

The hospitality and entertainment sectors typically have lower profit margins, often due to high operating costs and capital expenditures. However, some companies have been known to exploit their market share for excessive profits.

Profit Cap: 8-12% An 8-12% profit cap ensures these businesses can remain profitable while not inflating prices for consumers.
Penalty for Excessive Profits: Profits above 12% will face a 25% penalty.
Incentives for U.S. Investment:
- Companies that create jobs in the hospitality sector, such as hotels, resorts, and tourism-related businesses in underserved regions, will receive tax incentives (up to 15%).
- Airlines and travel businesses that maintain U.S.-based operations or expand their U.S. workforce will receive 5% tax credits for every job created domestically.

Manufacturing and Industrials (Automakers, Heavy Machinery, Construction Equipment)

Manufacturing businesses generally have moderate profit margins and are more capital-intensive, but are essential for long-term economic growth. These industries should be encouraged to expand and modernize U.S. production.

Profit Cap: 10-15% A 15% profit cap ensures that manufacturing businesses can earn reasonable returns while reinvesting in American production.
Penalty for Excessive Profits: Profits above 15% will incur an additional 30% tax.
Incentives for U.S. Manufacturing:
- Companies that relocate manufacturing from overseas to the U.S. will be eligible for substantial tax breaks, including accelerated depreciation for new plants or machinery.
- For every 10% increase in U.S. manufacturing jobs, companies will receive a 10% tax cut on domestic operations.

Energy (Oil, Gas, Renewable Energy)
Energy companies operate in a volatile market, but can still profit significantly, particularly during periods of high demand. It is critical to ensure that energy prices remain reasonable and that the U.S. invests in its own energy independence.

Profit Cap: 10-15% A 10-15% profit cap ensures energy companies do not excessively raise prices while allowing for reasonable profit-taking.
Penalty for Excessive Profits: Any profits exceeding 15% will be taxed at an additional 30% on excess profits.
Incentives for Domestic Energy Investment:
- Energy companies that invest in American-based exploration, clean energy infrastructure, or domestic energy security will receive tax cuts up to 25% of their total investment.
- Companies that focus on energy independence by boosting U.S. energy production, particularly renewable energy, will qualify for a 30% tax rebate on investments in these technologies.

Agriculture and Food Production (Tyson Foods, Cargill, Monsanto)
Agricultural companies traditionally operate with lower profit margins due to high operational costs, but must still be incentivized to keep prices in check and invest in American agriculture.

Profit Cap: 8-12% This ensures that agribusinesses are profitable without exploiting consumers.
Penalty for Excessive Profits: Any profits exceeding 12% will face a 25% penalty.
Incentives for Domestic Production:
- Agribusinesses that focus on U.S. farming, domestic food production, and local processing will qualify for tax credits for every American job created in food production and agricultural processing.
- Farmers or agricultural companies investing in sustainable farming or local food systems will receive tax credits and grants to support U.S. food independence.

Section 2: Reinvestment of Penalties into National Infrastructure, Security, and Stipends
All penalties collected from companies exceeding the profit caps will be allocated to the following initiatives:

National Infrastructure Fund: To modernize U.S. infrastructure, including:
- Transportation systems: Roads, bridges, rail, and public transit.
- Energy security: Power grids, clean energy infrastructure, and energy independence.
- Water and utilities: Modernizing water systems and ensuring clean drinking water for all Americans.
National Security and Cybersecurity Fund: To strengthen national security and cybersecurity, ensuring that critical infrastructure is protected from cyber threats and that the U.S. is prepared for future challenges.
Consumer Relief Stipend: A direct stipend to the American people to help offset rising consumer costs due to inflation, excessive corporate profits, or increasing costs of goods and services. The stipend will be distributed equally among U.S. households to ensure that all Americans benefit from the penalties imposed on corporations.

Section 3: Maintaining Competitive American Industry
The bill encourages business growth while ensuring American consumers are not overburdened by excessive corporate profits. By offering substantial tax incentives for companies that create jobs, manufacture domestically, and keep consumer prices stable, the bill ensures that American businesses thrive responsibly without resorting to price gouging or profit exploitation.

End of Bill

Conclusion:
This legislation strikes a balance between ensuring responsible corporate profitability and promoting fair competition. It encourages American companies to invest in American jobs, manufacture domestically, and keep prices fair, while penalizing excessive profits and reinvesting those funds into critical national priorities like infrastructure, cybersecurity, and direct relief for American families. The bill ensures long-term prosperity for both businesses and the American people, by emphasizing growth without greed.