Tax Excessive CEO Pay Act of 2024

Hozzl · 2024-02-03T12:45:18Z

Explore the details of Senate Bill 3620 Tax Excessive CEO Pay Act of 2024 currently in Congress. Get insights into its purpose, current status, sponsors, and potential impact on undefined. Stay informed on legislative developments.

2/3/2024, 12:45 PM

Summary of Bill S 3620

Bill 118 s 3620, also known as the Tax Excessive CEO Pay Act of 2024, is a piece of legislation introduced in the US Congress with the aim of addressing the issue of excessive CEO compensation. The bill seeks to impose a tax on companies that pay their CEOs more than 50 times the median salary of their employees.

Under the provisions of the bill, companies would be required to pay a tax equal to 5% of the amount by which the CEO's compensation exceeds 50 times the median salary of their employees. This tax would be in addition to any other taxes owed by the company.

The bill aims to incentivize companies to reduce the pay gap between their CEOs and their employees, and to promote greater income equality within organizations. Proponents of the bill argue that excessive CEO pay contributes to income inequality and can have negative effects on employee morale and productivity. Opponents of the bill argue that it could discourage companies from hiring top talent and could have unintended consequences for the economy. They also argue that CEO pay should be determined by market forces rather than government intervention. Overall, the Tax Excessive CEO Pay Act of 2024 is a controversial piece of legislation that seeks to address the issue of excessive CEO compensation in a non-partisan manner. It remains to be seen whether the bill will garner enough support to pass in Congress and become law.

Congressional Summary of S 3620

Tax Excessive CEO Pay Act of 2024

This bill increases the current 21% income tax rate of corporations whose ratio of compensation of their principal executive officers or other highest compensated employees to median worker compensation is more than 50 to 1, in which case the increase is 0.5%. The pay ratio disparity extends from 100 to 1 to 500 to 1, in which case the increase is 5%. The bill exempts from such increase certain corporations based upon their average annual gross receipts.

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Current Status of Bill S 3620

Bill S 3620 is currently in the status of Bill Introduced since January 18, 2024. Bill S 3620 was introduced during Congress 118 and was introduced to the Senate on January 18, 2024. Bill S 3620's most recent activity was Read twice and referred to the Committee on Finance. as of January 18, 2024

Bipartisan Support of Bill S 3620

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Policy Area and Potential Impact of Bill S 3620

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Alternate Title(s) of Bill S 3620

Tax Excessive CEO Pay Act of 2024Tax Excessive CEO Pay Act of 2024A bill to amend the Internal Revenue Code of 1986 to impose a corporate tax rate increase on companies whose ratio of compensation of the CEO or other highest paid employee to median worker compensation is more than 50 to 1, and for other purposes.

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