DemocratBill · H.R. 5019· House(119-HR-5019)

CEO Accountability and Responsibility Act

Rep. DeSaulnier
Age: 74 years
California
Introduced
8/22/2025
Last activity
8/22/2025 — Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sponsored by
Mark DeSaulnier
Cosponsors
Democrat - 2Republican - 0
Taxation
  1. Introduced
  2. In Committee

What this bill would do

The CEO Accountability and Responsibility Act seeks to amend the Internal Revenue Code of 1986 regarding publicly traded corporations. It introduces a system where a corporation's income tax rate is adjusted based on its compensation ratio. This ratio compares the highest paid employee's compensation to the median compensation of all employees in the United States. The bill establishes specific percentage point increases to the tax rate as this ratio grows. Additionally, it includes a special rule that increases the tax rate further if a company reduces its U.S. full-time workforce while increasing contracted or foreign employees. Finally, the act creates a preference for companies with a compensation ratio of less than 50-to-1 when they bid on government contracts.

Yes· 3 of 7

  • Does this raise the taxes companies pay?+5

    The bill increases the corporate income tax rate for publicly traded corporations based on their internal compensation ratio.

  • Would households on low incomes be better off under this?+3

    By penalizing excessive pay gaps and job displacement, the bill provides indirect support for wage stability and job security for median earners.

  • Is this likely to create jobs?+2

    The bill incentivizes maintaining full-time U.S. employees by penalizing corporations that reduce their domestic workforce in favor of contractors or foreign workers.

The opposite

  • Would high-income households be better off under this?-4

    The bill specifically targets the highest-paid employees by increasing tax rates as their compensation relative to the median grows.

  • Would business owners be better off under this?-3

    The bill imposes additional tax burdens and potential contract disadvantages on corporations with high pay ratios.

  • Is this likely to grow the economy?-1

    Higher corporate tax rates for high-ratio companies may discourage certain corporate structures or investment behaviors.