Tax Excessive CEO Pay Act of 2025

This bill would raise the federal corporate income tax rate, now 21 percent, for corporations that pay their CEO or highest-paid employee more than 50 times what their median worker earns. The increase starts at 0.5 percentage points for ratios above 50 to 1 and rises in steps to 5 percentage points for ratios above 500 to 1. Pay would be measured as a 5-year average. Private companies with average yearly gross receipts under $100 million would be exempt, while larger private companies would have to calculate and report their ratio under Treasury rules. The Treasury would issue rules to stop companies from changing their pay ratio, such as by using contractors instead of employees, and the change would apply to tax years beginning after December 31, 2025.

Full text and official record on Congress.gov

Sponsors

• Bernard Sanders Independent sponsor
• 5 cosponsors