Rep. Rashida Tlaib introduced The Tax Excessive CEO Pay Act, which would apply a higher corporate tax rate to companies that pay their CEOs a disproportionate amount compared to their workers. The bill increases the corporate tax rate on a scale starting at 0.5% for companies that have a CEO-to-median-worker pay ratio greater than 50 to 1 to 5% for companies reporting a ratio greater than 500 to 1. This rate would apply to both public and private companies and, in instances where the CEO is paid little to nothing, adjusts the ratio calculation to be based on the company’s highest paid employee.
