Exploring key 2024 tax bill proposals

The Tax Excessive CEO Pay Act, introduced by lawmakers aims to address income inequality by imposing a corporate tax rate increase on companies with a high CEO-to-worker pay ratio. Under this act, if a corporation’s CEO or highest-paid employee’s compensation exceeds 50 times the median worker’s pay, the corporate tax rate would be increased by a penalty determined by the legislation. The penalty would be expressed in percentage points and would vary based on the pay ratio. For example, if the pay ratio is greater than 50 to 1 but not greater than 100 to 1, the tax rate would be increased by 0.5%. If the pay ratio is greater than 100 to 1 but not greater than 200 to 1, the tax rate would be increased by 1%, and so on. The penalty increases as the pay ratio widens. It is important to note that this act is still in the proposal stage and would require further deliberation and potential amendments before becoming law. However, it highlights the ongoing discussions surrounding executive compensation and income disparity in the United States.