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New Tax on Excessive CEO Pay: Rules for Large Companies.

This act introduces a new tax for large companies where the highest-paid employees earn significantly more than the average worker. The goal is to reduce pay disparities. Companies meeting specific revenue and wage criteria will face an additional tax, potentially influencing their compensation strategies.
Key points
A new tax applies to companies with annual gross receipts over $100 million and total wages over $10 million.
The tax is imposed if the highest-compensated employee's pay (typically the CEO) is more than 50 times the median wages of other employees.
The tax amount is 1% of the pay disparity or 1% of the company's gross receipts, whichever is less.
The provisions will apply to tax years beginning after the act's enactment, affecting future corporate tax planning.
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Additional Information
Print number: 118_HR_6191
Sponsor: Rep. Lee, Barbara [D-CA-12]
Process start date: 2023-11-02
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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

Curtailing Executive Overcompensation (CEO) Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_6191.

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 2023-11-02.

What are the main provisions?

Key points include:

  • A new tax applies to companies with annual gross receipts over $100 million and total wages over $10 million.
  • The tax is imposed if the highest-compensated employee's pay (typically the CEO) is more than 50 times the median wages of other employees.
  • The tax amount is 1% of the pay disparity or 1% of the company's gross receipts, whichever is less.
  • The provisions will apply to tax years beginning after the act's enactment, affecting future corporate tax planning.
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-12].

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 2025-12-25.

CATEGORIES

Taxes Labor Economy