Hard-working people who put in a full week’s work should be able to afford a decent life. That means being able to pay the rent or mortgage, keep the lights on, put food on the table, and save a little for the future.
But for decades, wages for working and middle-class Americans have failed to keep up with the real cost of living. While productivity and corporate profits have grown, too many families are working full time — sometimes more than one job — and still struggling to get by.
It’s time to realign our economy so that companies succeed because they invest in their workers, not by underpaying them.
The Core Principle
Public policy should reward businesses that provide good wages and solid benefits — and stop giving the biggest advantages to companies that keep pay low.
If taxpayers are supporting businesses through the tax code, contracts, and incentives, those businesses should be supporting American workers in return.
Policy Proposal: Tie Business Incentives to Worker Pay and Benefits
As your representative, I will propose a bill that restructures federal business incentives so that companies that pay higher wages and provide better benefits receive greater financial advantages.
1. Wage-Based Tax Incentives
Businesses would receive enhanced tax credits or reduced tax rates based on how well they pay their workforce compared to the local cost of living.
- Companies that pay a living wage (not just minimum wage) would qualify for the strongest incentives
- Additional incentives for businesses that:
- Provide employer-sponsored health insurance
- Offer paid family and medical leave
- Contribute to retirement plans
This creates a clear message: the better you treat your workers, the more your business benefits.
2. Federal Contracting Preferences
When the federal government awards contracts, worker pay and benefits should be a major factor in the decision.
- Companies bidding for federal contracts would receive scoring advantages if they:
- Pay above a regional living wage
- Maintain fair scheduling practices
- Provide stable hours and benefits
Taxpayer dollars should go first to companies that create good jobs here at home.
3. Incentives for Small and Growing Businesses
Small businesses are vital to communities like ours, and many already do right by their workers but operate on tight margins.
This plan would include:
- Gradual phase-ins for small businesses
- Targeted tax relief to help smaller employers raise wages
- Technical assistance to help them transition to higher-wage models
The goal isn’t to punish small employers — it’s to help them compete with large corporations while still paying workers fairly.
4. Transparency and Accountability
To ensure fairness and prevent abuse:
- Companies receiving enhanced incentives would report anonymized wage and benefit data
- Strong penalties for misclassification of workers or wage theft
- Clear, simple standards so businesses know exactly how to qualify
Why This Matters
This policy helps rebuild the middle class by making sure economic growth reaches working families — not just the top.
It also supports responsible businesses that already do the right thing but are forced to compete against companies that cut wages to boost profits. By leveling the playing field, we reward high-road employers instead of encouraging a race to the bottom.
When workers earn more:
- Families are more financially secure
- Local businesses see more spending
- Communities grow stronger
That’s not just good for workers — it’s good for the entire economy
Proposed Legislation: The Rewarding Work and Wages Act
David has drafted proposed legislation to put these principles into law. The Rewarding Work and Wages Act flips the incentive structure on wages. Instead of mandating pay floors that can hurt small businesses, it rewards employers who choose to pay a living wage with meaningful tax credits, with the most generous benefits going to small businesses. Small businesses also get a three-year phase-in, free technical assistance, and simplified reporting. Companies that underpay and push costs onto taxpayers get nothing.
Read the Policy Brief (PDF) | Read the Full Proposed Bill (PDF)