,i #aac? ,,congress #b;d ,session ,h4 ,r4 #effb ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,septemb] #ah1 #bjad ,mr4 ,van ,holl5 7= himself & ,mr4 ,clyburn7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to exp& ! d5ial ( d$uction = c]ta9 excessive employee remun]ation4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,,ceo-,employee ,pay ,fairness ,act ( #bjad4 #b4 ,expansion ( d5ial ( d$uction = c]ta9 excessive employee remun]ation 7a7 ,exp&$ application ( d$uction d5ial if pay fairness requirem5t n met ,section #afb7m7 ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by add+ at ! end ! foll[+ new p>agraph3 7#g7 ,special rule 9 case ( companies n meet+ pay fairness requirem5t 7,a7 ,9 g5]al ,9 ! case ( a publicly held corporation :i* does n meet ! pay fairness requirem5t ( subp>agraph 7,b7 = ! taxable ye>-- 7i7 no d$uction %all be all[$ "u ?is *apt] = applicable employee remun]ation ) respect to any employee to ! ext5t t ! am\nt ( su* remun]ation = ! taxable ye> ) respect to su* employee exce$s #a1jjj1jjj1 & 7ii7 p>agraph 7#d7 %all be appli$ )\t reg>d to subp>agraphs 7,b71 7,c71 & 7,d7 !re(4 ,= purposes ( ! prec$+ s5t5ce1 ! t]m employee includes any (fic] or director ( ! taxpay] & any =m] (fic]1 director1 or employee ( ! taxpay]4 7,b7 ,pay fairness requirem5t ,! pay fairness requirem5t ( ?is subp>agraph is satisfi$ if-- 7i7 7,i7 ! av]age comp5sation paid by ! taxpay] to or = all applicable ,unit$ ,/ates employees = ! taxable ye>1 exce$s 7,,ii7 ! inflation & productivity gr[? adju/$ av]age ( su* comp5sation = ! prec$+ taxable ye>1 & 7ii7 ! aggregate comp5sation paid by ! employ] to or = all applicable ,unit$ ,/ates employees = ! taxable ye> is n less ?an ! aggregate ( su* comp5sation = ! prec$+ taxable ye>4 7,c7 ,applicable ,unit$ ,/ates employee ,= purposes ( ?is p>agraph1 ! t]m applicable ,unit$ ,/ates employee means1 ) respect to any taxable ye>1 any employee-- 7i7 ^: s]vices ) respect to ! employ] are sub/antially all p]=m$ )9 ! ,unit$ ,/ates1 & 7ii7 ^: comp5sation f ! employ] = ! taxable ye> does n exce$ ! doll> am\nt 9 effect "u section #dad7q77#a77;,b77i7 ) respect to ! cal5d> ye> 9 :i* su* taxable ye> beg9s4 7,d7 ,inflation & productivity gr[? adju/$ av]age ,! inflation & productivity gr[? adju/$ av]age ( comp5sation "u subp>agraph 7,b77i77,,ii7 = any taxable ye> %all be det]m9$ by multiply+-- 7i7 ! av]age ( ! comp5sation paid by ! taxpay] to or = all applicable ,unit$ ,/ates employees = ! taxable ye>1 by 7ii7 ! sum ( ! co/-(-liv+ adju/m5t & ! productivity adju/m5t = ! taxable ye>4 7,e7 ,co/-(-liv+ adju/m5t ,= purposes ( subp>agraph 7,d77ii71 ! co/-(-liv+ adju/m5t = any taxable ye> %all be ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ ! second prec$+ cal5d> ye> = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7,f7 ,productivity adju/m5t ,= purposes ( subp>agraph 7,d77ii7-- 7i7 ,9 g5]al ,! productivity adju/m5t = ! taxable ye> %all be an am\nt 7express$ z a p]c5tage7 equal to ! av]age annual increase 9 ! bus9ess productivity index = ! p]iod beg9n+ ) cal5d> ye> #bjjj & end+ ) ! cal5d> ye> prec$+ ! cal5d] ye> 9 :i* ! taxable ye> beg9s4 7ii7 ,bus9ess productivity index ,! t]m bus9ess productivity index means ! nonf>m bus9ess productivity index publi%$ by ! ,bureau ( ,labor ,/ati/ics z adju/$ by ! ,secret>y to acc\nt = depreciation4 7,g7 ,comp5sation ,= purposes ( ?is subp>agraph1 ! t]m comp5sation means1 ) respect to any employee1 ! sum (-- 7i7 ! employee's wages on :i* ! tax "u section #caja7;b7 is impos$1 plus 7ii7 any am\nt describ$ 9 p>agraph 7#i71 7#aa71 7#ab71 or 7#ad7 ( section #fjea7;a7 ) respect to ! employee4 7,h7 ,aggregation rules ,rules simil> to ! rules ( p>agraph 7#e77;,b77iii7 %all apply = purposes ( ?is p>agraph4 7,i7 ,regulations ,! ,secret>y may prescribe su* regulations z are necess>y to c>ry out ! purposes ( ?is p>agraph1 includ+ adju/m5ts to ! pay fairness requirem5ts ( subp>agraph 7,b7-- 7i7 to prev5t avoidance ( ?is p>agraph ?r\gh *anges 9 ! composition ( ! taxpay]'s work=ce1 & 7ii7 to acc\nt = significant1 non-tax-motivat$ *anges 9 ! size & composition ( ! taxpay]'s work=ce 7includ+ m]g]s1 sp9(fs1 or *anges 9 ! occupational composition ( a taxpay]'s work=ce74 4 7b7 ,modification ( def9ition ( cov]$ employees 7#a7 ,9 g5]al ,p>agraph 7#c7 ( section #afb7m7 ( su* ,code is am5d$-- 7,a7 9 subp>agraph 7,a71 by /rik+ z ( ! close ( ! taxable ye>1 su* employee is ! *ief executive (fic] ( ! taxpay] or is & ins]t+ su* employee is ! *ief executive (fic] or ! *ief f9ancial (fic] ( ! taxpay] at any "t dur+ ! taxable ye>1 or 01 7,b7 9 subp>agraph 7,b7 by /rik+ 7o!r ?an ! *ief executive (fic]7 & ins]t+ 7o!r ?an any individual describ$ 9 subp>agraph 7,a771 & 7,c7 by /rik+ or at ! end ( subp>agraph 7,a71 by /rik+ ! p]iod at ! end ( subp>agraph 7,b7 & ins]t+ 1 or1 & by add+ at ! end ! foll[+3 7,c7 0 a cov]$ employee ( ! taxpay] 7or any pr$ecessor7 = any prec$+ taxable ye> beg9n+ aft] ,decemb] #ca1 #bjad4 4 7#b7 ,te*nical am5dm5t ,section #afb7m77#c77;,b7 ( su* ,code is am5d$ by /rik+ #d highe/ & ins]t+ #c highe/4 7c7 ,applicable employee remun]ation paid to b5efici>ies1 etc ,p>agraph 7#d7 ( section #afb7m7 ( su* ,code is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,h7 ,special rule = remun]ation paid to b5efici>ies1 etc ,remun]ation %all n fail to be applicable employee remun]ation m]ely because x is includible 9 ! income (1 or paid to1 a p]son o!r ?an ! cov]$ employee1 includ+ aft] ! dea? ( ! cov]$ employee4 4 7d7 ,expansion ( applicable employ] ,to include non-,li/$ public companies ,p>agraph 7#b7 ( section #afb7m7 ( su* ,code is am5d$ to read z foll[s3 7#b7 ,publicly held corporation ,= purposes ( ?is subsection1 ! t]m publicly held corporation means any corporation :i* is an issu] 7z def9$ 9 section #c ( ! ,securities ,ex*ange ,act ( #aicd7-- 7,a7 t has a class ( securities regi/]$ "u section #ab ( su* ,act1 or 7,b7 t is requir$ to file reports "u section #ae7;d7 ( su* ,act4 4 7e7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjad4