Adds a new tax on large companies where CEO pay is much higher than what their average workers earn.
This bill would add a new tax for large companies if their highest-paid employee earns significantly more than their average worker. Currently, there isn't a specific federal tax on companies based on how much more their top executives make compared to other employees. This change aims to address what the bill calls 'excessively disparate wages' for chief executive officers.
Today, the Internal Revenue Code does not have a specific excise tax for companies based on the pay gap between their highest-paid employee and their median worker. This bill would change that by adding a new 1 percent excise tax on large companies if their highest-paid employee's average wages are more than 50 times the median wages of their applicable employees. For example, if a CEO makes 60 times the median worker's pay, the company would owe the tax.
S 5011 · 119th Congress · July 16, 2026 · AI Summary by gemini-2.5-flash · 7/10
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