Bill · S. 1576· Senate(119-S-1576)
Stop Subsidizing Multimillion Dollar Corporate Bonuses Act
- Introduced
- 5/1/2025
- Last activity
- 5/1/2025 — Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S2738-2739)
- Sponsored by
- John Reed
- Cosponsors
- - 7 - 0
- Introduced
- In Committee
What this bill would do
The "Stop Subsidizing Multimillion Dollar Corporate Bonuses Act" aims to amend the Internal Revenue Code of 1986. It focuses on expanding the denial of tax deductions for certain excessive employee remuneration. The bill changes definitions for "covered employee" to "covered individual" and expands who qualifies as a "covered individual." It also modifies the definition of a publicly held corporation regarding reporting requirements. Additionally, it grants the Secretary authority to create regulations to prevent compensation avoidance through pass-through entities. These changes are intended to apply to taxable years beginning after December 31, 2024.
Yes· 3 of 8
Does this raise the taxes companies pay?+6
The bill increases the corporate tax burden by denying deductions for excessive remuneration of high-ranking individuals.
Does this raise taxes on the highest earners?+5
By targeting high-compensation individuals, the bill effectively increases the tax burden on high earners through corporate deduction denials.
Does this give the federal government more power?+3
The bill expands federal regulatory authority over corporate compensation structures.
The opposite· 3 of 6
Would high-income households be better off under this?-5
High-income individuals receiving corporate bonuses may see the impact of denied deductions.
Would people with substantial wealth be better off under this?-5
The bill specifically targets compensation for highly compensated individuals.
Would the very wealthiest people be better off under this?-5
The bill targets high-level compensation and aims to prevent avoidance via pass-through entities.
Who it would affect, and how
Potential Positive Impacts for People
-
Expansion of Denial of Deduction: Under Section 2(a), the bill expands the denial of tax deductions for certain excessive remuneration. This is intended to target the compensation of "covered individuals," which includes principal executive officers, principal financial officers, and among the three highest compensated officers.
-
Prevention of Avoidance: Section 2(c)(1) provides the Secretary with authority to create regulations specifically designed to prevent people from avoiding these rules by providing compensation through a pass-through or other entity.
Potential Negative Impacts for People
- New Tax Burdens on Individuals: Under Section 2(a)(2), the definition of a "covered individual" is expanded to include anyone performing services for the taxpayer or specific high-ranking officers. This change in how remuneration is treated could affect the tax deductions available to corporations paying these individuals.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+1Good For Middle Class Households+1Good For Union Workers+1Good For Billionaires-5Good For High Income Households-5Good For High Net Worth Individuals-5Good For Ultra High Net Worth Individuals-5Good For Business Owners-4
- Economy And Finance
- Increases Corporate Taxes+6Increases Wealthy Taxes+5Improves Fiscal Responsibility+2Reduces National Debt+2Improves Economic Growth-1
- Governance And Ideology
- Increases Federal Power+3
- 12/2/2025
- 1 Cosponsor added.
- 5/1/2025
- Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S2738-2739)
- 7 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Angela AlsobrooksDemocrat · Maryland
Tammy BaldwinDemocrat · Wisconsin
Richard BlumenthalDemocrat · Connecticut
Jeff MerkleyDemocrat · Oregon
Bernie SandersIndependent · Vermont
Chris Van HollenDemocrat · Maryland
Sheldon WhitehouseDemocrat · Rhode Island
Elizabeth WarrenDemocrat · Massachusetts