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Ending Tax Deductions for Multimillion-Dollar Corporate Executive Bonuses

This bill aims to limit the ability of large corporations to deduct excessive executive compensation and bonuses from their federal taxes. This means companies can no longer reduce their tax bill at the expense of taxpayers when paying multimillion-dollar amounts to top managers. The change expands existing rules to cover more individuals and types of corporations.
Key points
Tax Changes: Companies will no longer be able to deduct federal taxes for certain excessive remuneration and bonuses paid to a broader group of executives.
Expanded Definition: The new rules cover a wider range of individuals within a company, changing the definition from 'employee' to 'covered individual' and including the 3 highest compensated officers.
More Companies Affected: The changes apply not only to publicly traded companies but also to those required to file reports under the Securities Exchange Act of 1934.
Effective Date: The new rules apply to taxable years beginning after December 31, 2022.
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Additional Information
Print number: 118_HR_324
Sponsor: Rep. Doggett, Lloyd [D-TX-37]
Process start date: 2023-01-12
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_324.

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 2023-01-12.

What are the main provisions?

Key points include:

  • Tax Changes: Companies will no longer be able to deduct federal taxes for certain excessive remuneration and bonuses paid to a broader group of executives.
  • Expanded Definition: The new rules cover a wider range of individuals within a company, changing the definition from 'employee' to 'covered individual' and including the 3 highest compensated officers.
  • More Companies Affected: The changes apply not only to publicly traded companies but also to those required to file reports under the Securities Exchange Act of 1934.
  • Effective Date: The new rules apply to taxable years beginning after December 31, 2022.
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. Doggett, Lloyd [D-TX-37].

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 2025-12-30.

CATEGORIES

Taxes Economy