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Tax Hike for Companies with High CEO Pay Ratios

This act introduces tax increases for companies where the compensation of the CEO or highest-paid employee is more than 50 times the median worker compensation. This aims to reduce pay 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 a CEO-to-worker pay ratio greater than 50:1 will face an increased corporate tax rate.
The tax increase amount is tiered, with higher ratios leading to larger percentage point increases in the tax rate.
The provisions apply to taxable years beginning after December 31, 2025, and include large private corporations.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_5298
Sponsor: Rep. Tlaib, Rashida [D-MI-12]
Process start date: 2025-09-11
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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 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5298.

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 2025-09-11.

What are the main provisions?

Key points include:

  • Companies with a CEO-to-worker pay ratio greater than 50:1 will face an increased corporate tax rate.
  • The tax increase amount is tiered, with higher ratios leading to larger percentage point increases in the tax rate.
  • The provisions apply to taxable years beginning after December 31, 2025, and include large private corporations.
What is the specific legal status?

The current status is Introduced.

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. Tlaib, Rashida [D-MI-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 2025-12-23.

CATEGORIES

Taxes Labor Economy