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Tax on Excessive CEO Pay: Higher Taxes for Companies with Large Pay Gaps.

A new bill proposes to increase taxes for companies where the CEO's or highest-paid employee's compensation is more than 50 times the median worker's pay. The aim is to reduce income inequality and potentially encourage companies to distribute profits more equitably, which could impact economic and social stability.
Key points
Companies where the CEO earns over 50 times the average worker's pay will face a higher corporate tax rate.
The additional tax amount depends on the scale of the pay disparity – the larger the gap, the higher the tax.
The provisions are set to take effect after December 31, 2021, and will also apply to large private corporations.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 117_HR_1979
Sponsor: Rep. Lee, Barbara [D-CA-13]
Process start date: 2021-03-17
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax Excessive CEO Pay Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1979.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-17.

What are the main provisions?

Key points include:

  • Companies where the CEO earns over 50 times the average worker's pay will face a higher corporate tax rate.
  • The additional tax amount depends on the scale of the pay disparity – the larger the gap, the higher the tax.
  • The provisions are set to take effect after December 31, 2021, and will also apply to large private corporations.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Lee, Barbara [D-CA-13].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Labor Economy