Tax Excessive CEO Pay Act of 2025

This bill would raise the federal corporate income tax rate for companies that pay their CEO or highest-paid employee more than 50 times what their median worker earns. The 21 percent rate would go up by 0.5 percentage points at the lowest level and by up to 5 percentage points for ratios above 500 to 1. The ratio would be based on a 5-year average of pay. Private companies not subject to SEC filing rules with average yearly gross receipts under $100 million would be exempt. The Treasury would write rules to prevent companies from avoiding the tax, such as by using contractors instead of employees. The changes would apply to tax years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Rashida Tlaib Democrat sponsor
• 29 cosponsors