S 2818
Tax Excessive CEO Pay Act of 2025
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Bill overview
The Tax Excessive CEO Pay Act of 2025 aims to address concerns about significant disparities between CEO compensation and worker pay. It proposes to increase the corporate tax rate for companies whose CEO-to-median worker pay ratio exceeds 50 to 1. The increase in the tax rate will be tiered based on how much the ratio exceeds the 50-to-1 threshold, with higher ratios resulting in larger tax increases. The bill also includes provisions to expand the calculation of this ratio to include annualized average compensation over a 5-year period and establishes rules for corporations with lower gross receipts to calculate and report their pay ratios.
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