CONGRESS FOR VOTERS

DemocratBill · H.R. 5298· House(119-HR-5298)

Tax Excessive CEO Pay Act of 2025

Rep. Tlaib
Age: 50 years
Michigan
Introduced
9/11/2025
Last activity
9/11/2025 — Referred to the House Committee on Ways and Means.
Sponsored by
Rashida Tlaib
Cosponsors
Democrat - 29Republican - 0
Taxation
  1. Introduced
  2. In Committee

What this bill would do

The Tax Excessive CEO Pay Act of 2025 aims to amend the Internal Revenue Code of 1986. It seeks to impose a corporate tax rate increase on companies with a high pay ratio. Specifically, this applies if the ratio of the highest paid employee's compensation to the median worker's compensation exceeds 50 to 1. The penalty is an increase in percentage points based on how high the ratio is. This act would apply to taxable years beginning after December 31, 2025.

Yes

  • Does this raise the taxes companies pay?+5

    The bill increases the corporate tax rate by up to 5 percentage points for companies with a pay ratio exceeding 50 to 1.

  • Would households on low incomes be better off under this?+2

    The bill targets high pay disparities, which may indirectly support the interests of lower-income workers by penalizing extreme wealth concentration in corporations.

  • Would union members be better off under this?+2

    The bill creates a financial incentive for companies to narrow the pay gap between executives and median workers.

The opposite

  • Would business owners be better off under this?-4

    The bill imposes higher tax rates on large corporations with high pay ratios, affecting corporate owners' net profits.

  • Would high-income households be better off under this?-3

    The bill increases the tax burden on corporations that pay their highest-earning executives significantly more than their median workers.