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Higher Taxes for Companies with Large CEO-to-Worker Pay Gaps

This bill proposes increasing corporate taxes for companies where the CEO's or highest-paid employee's compensation is more than 50 times that of the median worker. The aim is to reduce pay inequality in large corporations. These changes could influence company compensation strategies and potentially their competitiveness.
Key points
Companies with a CEO-to-worker pay ratio greater than 50 to 1 will face a higher corporate tax rate.
The additional tax amount depends on the severity of the pay gap; a larger gap means a higher tax increase.
The provisions are set to apply to tax years beginning after December 31, 2021, and include large private corporations.
The goal is to discourage excessive pay disparities, potentially impacting corporate compensation policies.
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Status:
Expired
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Additional Information
Tax Excessive CEO Pay Act of 2021
Print number: S 794
Sponsor: Sen. Sanders, Bernard [I-VT]
Process start date: 2021-03-17
System Note: Lustra is free, publicly auditable civic infrastructure, with full source code available on GitHub. You are reading sterilized legislative data, processed by our radical neutrality engine to strip political spin and retain factual mechanics. We process only official government data. Original documents remain the authoritative source, always verify them if you can.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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Summary & Status

Key Questions about Higher Taxes for Companies with Large CEO-to-Worker Pay Gaps

A structured overview of the legislative process, official sources, status and civic context.

What is the official ID of this bill?

The official print number for this legislation is S 794.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-03-17.

What are the main provisions?

Key points include:

  • Companies with a CEO-to-worker pay ratio greater than 50 to 1 will face a higher corporate tax rate.
  • The additional tax amount depends on the severity of the pay gap; a larger gap means a higher tax increase.
  • The provisions are set to apply to tax years beginning after December 31, 2021, and include large private corporations.
  • The goal is to discourage excessive pay disparities, potentially impacting corporate compensation policies.

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 Sen. Sanders, Bernard [I-VT].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

Analysis and Potential Impact of S 794

We don't know, that is up to you to decide. Summarizing raw data with AI is fundamentally different from predicting socio-economic outcomes. As of 2026, we believe impact assessment strictly requires a human in the loop to verify and judge. Review our public AI processing logs for full transparency, and use Lustra to track active legislation for instant status push notifications.

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