Curtailing Executive Overcompensation (CEO) Act
A bill to amend the Internal Revenue Code of 1986 to impose an excise tax on excessively disparate wages paid to chief executive officers.
This bill proposes to change the tax law to add a new tax on companies that pay their chief executive officers (CEOs) wages that are significantly higher than those of the average worker. If passed, the tax would apply to the excessive part of the CEO's salary compared to the average worker's wage in the company.
The bill would affect large companies with CEOs who earn much more than their employees. The tax revenue generated could be used to fund public services or reduce other taxes. However, it might also lead to companies re-evaluating their compensation policies to avoid higher taxes.
The bill was introduced on July 16, 2026, and has been referred to the Senate Committee on Finance for further review. As of now, no further action has been taken. The bill is in its early stages, and its future is uncertain, pending the committee's review and potential recommendations.
