Tax Excessive CEO Pay Act of 2025 increases corporate tax rates for companies with high CEO-to-worker pay ratios.
The Tax Excessive CEO Pay Act of 2025 amends the Internal Revenue Code to impose a corporate tax rate increase on companies where the compensation of the CEO or highest-paid employee is more than 50 times the median worker compensation. The tax increase is based on the pay ratio, with higher ratios resulting in greater tax rate increases. The bill exempts corporations with average annual gross receipts under $100 million. The amendments apply to taxable years beginning after December 31, 2025.
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