Bill > S794

This bill, the Tax Excessive CEO Pay Act of 2021, aims to amend the Internal Revenue Code of 1986 to impose a corporate tax rate increase on companies whose ratio of compensation of the CEO or other highest-paid employee to median worker compensation is more than 50 to 1. The bill outlines specific tax increases based on different pay ratio thresholds, with the highest increase of 5 percentage points for companies with a pay ratio greater than 500 to 1. The bill also includes conforming amendments to other sections of the tax code and directs the Secretary of the Treasury to issue regulations to prevent avoidance of the purposes of the amendments, such as through changes to the composition of the workforce.