arrow_back Back to App

Tax on Excessive CEO Pay: Higher Corporate Taxes for Companies with Large Pay Gaps

This act introduces higher corporate taxes for companies where the CEO's or highest-paid employee's compensation is more than 50 times the median worker's pay. The goal is to reduce income inequality and may influence compensation strategies in large corporations, potentially leading to changes in pay structures or product/service pricing.
Key points
Companies with CEO pay exceeding 50 times the median worker's pay will face an increased corporate tax rate.
The penalty tax rate increases with the widening gap between top executive and median worker compensation.
These changes apply to tax years beginning after December 31, 2025.
Small corporations (gross receipts under $100 million annually) are exempt from this requirement.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_2818
Sponsor: Sen. Sanders, Bernard [I-VT]
Process start date: 2025-09-16
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

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_S_2818.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-09-16.

What are the main provisions?

Key points include:

  • Companies with CEO pay exceeding 50 times the median worker's pay will face an increased corporate tax rate.
  • The penalty tax rate increases with the widening gap between top executive and median worker compensation.
  • These changes apply to tax years beginning after December 31, 2025.
  • Small corporations (gross receipts under $100 million annually) are exempt from this requirement.
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 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 2025-12-23.

CATEGORIES

Taxes Labor Economy