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Tax Hike for Companies with Excessive CEO Pay

This act introduces a tax increase for companies where the CEO's or highest-paid employee's compensation is more than 50 times the median worker's pay. This aims to reduce income inequality and may influence compensation strategies in large corporations, potentially leading to changes in pay structures or the prices of goods and services.
Key points
Companies with CEO pay exceeding 50 times the median worker's pay will face a higher corporate tax rate.
The additional tax amount depends on the pay ratio – the larger the disparity, the higher the tax increase.
These changes will apply to tax years beginning after December 31, 2024.
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Expired
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Additional Information
Print number: 118_HR_7041
Sponsor: Rep. Lee, Barbara [D-CA-12]
Process start date: 2024-01-18
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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 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_7041.

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 2024-01-18.

What are the main provisions?

Key points include:

  • Companies with CEO pay exceeding 50 times the median worker's pay will face a higher corporate tax rate.
  • The additional tax amount depends on the pay ratio – the larger the disparity, the higher the tax increase.
  • These changes will apply to tax years beginning after December 31, 2024.
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