,i #aafth ,,congress #b;d ,session ,h4 ,r4 #hcgg ,,in ,,the ,,house ,,of ,,representatives ,september #bd1 #bjbj,mr4 ,de,saulnier introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,oversight and ,reform1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to adjust the rate of income tax of a publicly traded corporation based on the ratio of compensation of the corporation's highest paid employee to the median compensation of all the corporation's employees1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,ceo ,accountability and ,responsibility ,act4 #b4 ,income tax rate of publicly traded corporations based on compensation ratio 7a7 ,in general ,section #aa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following3 7e7 ,tax rate of publicly traded corporations based on compensation ratio 7#a7 ,in general ,in the case of a publicly traded corporation 7as defined in section #afb7m77#b771 in the amount of tax under subsection 7b7 shall be determined-- 7,a7 by adjusting the highest rate of tax applicable to the taxpayer by the percentage point adjustment specified in paragraph 7#b71 and 7,b7 by making proper adjustments to-- 7i7 the dollar amount in clause 7ii7 of the second sentence of paragraph 7#a71 and 7ii7 the dollar amount in clause 7ii7 of the third sentence of paragraph 7#a74 7#b7 ,adjustment of tax rate ,for purposes of paragraph 7#a71 the percentage points specified in this paragraph shall be determined as follows3 ,if the compensation ratio is3,the percentage point adjustment is3,more than #ajj but not more than #aejj4e percentage points,more than #aej but not more than #bjja percentage points,more than #bjj but not more than #beja4e percentage points,more than #bej but not more than #cjjb percentage points,more than #cjj but not more than #djjb4e percentage points,more than #djjc percentage points4 7#c7 ,definitions ,for purposes of this subsection-- 7,a7 ,compensation ratio ,the term compensation ratio means1 with respect to any taxable year1 a ratio-- 7i7 the numerator of which is the amount equal to the greater of the compensation of the chief executive officer or the highest paid employee of the taxpayer for the calendar year preceding the beginning of the taxable year1 and 7ii7 the denominator of which is the amount equal to the median compensation of all employees employed by the taxpayer in the ,united ,states for the calendar year preceding the beginning of the taxable year4 7,b7 ,compensation 7i7 ,employees ,in the case of employees of the taxpayer other than the chief executive officer or the highest paid employee1 the term compensation means wages 7as defined in section #caba7;a77 paid by the taxpayer during a calendar year4 7ii7 ,,ceo and highest paid employee ,in the case of the chief executive officer and the highest paid employee of the taxpayer1 the term compensation means total compensation for the calendar year1 as reported in the ,summary ,compensation ,table reported to the ,securities and ,exchange ,commission pursuant to ,item #djb of ,regulation ,s-,k of the ,securities and ,exchange ,commission4 7#d7 ,special rule if contracted or foreign employee ratio increases 7,a7 ,in general ,if-- 7i7 the total number of full-time employees1 determined on an annual full-time equivalent basis1 employed by the taxpayer in the ,united ,states for a taxable year is reduced by more than #aj percent1 as compared to the total number of full-time employees1 determined on an annual full-time equivalent basis1 employed by the taxpayer in the ,united ,states for the preceding taxable year1 and 7ii7 the total number of contracted employees or foreign full-time employees1 determined on an annual full-time equivalent basis1 of the taxpayer for that taxable year has increased1 as compared with the total number of contracted employees or foreign full-time employees1 determined on an annual full-time equivalent basis1 of the taxpayer for the preceding taxable year1 then the applicable tax rate determined under paragraph 7#b7 shall be increased by #ej percent4 ,for taxpayers who first commence doing business during the taxable year1 the number of full-time employees1 contracted employees1 and foreign full-time employees for the immediately preceding prior taxable year shall be zero4 7,b7 ,definitions ,for purposes of this paragraph-- 7i7 ,annual full-time equivalent ,the term annual full-time equivalent means-- 7,i7 in the case of a full-time employee paid hourly qualified wages1 the total number of hours worked for the taxpayer by the employee1 not to exceed #b1jjj hours per employee1 divided by #b1jjj1 and 7,,ii7 in the case of a salaried full-time employee1 the total number of weeks worked for the taxpayer by the employee divided by #eb4 7ii7 ,contracted full-time employee ,the term contracted full-time employee means an individual engaged by the taxpayer to provide a specific set of services established pursuant to the terms and conditions of a written employment contract that delineates the length of employment1 the salary and bonuses 7if any7 to be paid1 and the benefits that accrue to that individual4 7iii7 ,foreign full-time employee ,the term foreign full-time employee means a full-time employee of the taxpayer that is employed at a location other than the ,united ,states4 7iv7 ,full-time employee ,the term full-time employee means an employee of the taxpayer that either-- 7,i7 is paid compensation by the taxpayer for services of not less than an average of #ce hours per week1 or 7,,ii7 is a salaried employee of the taxpayer and is paid compensation during the taxable year for full-time employment4 7#e7 ,controlled groups ,for purposes of this subsection1 all persons treated as a single employer under subsection 7b71 7c71 7m7 or 7o7 of section #dad shall be treated as one person4 7#f7 ,reports ,the taxpayer shall furnish such reports to the ,secretary with respect to compensation and such other matters as the ,secretary may require4 ,the reports required by this subsection shall be filed at such time and in such manner as may be required by the ,secretary4 7#g7 ,regulations ,the ,secretary shall prescribe such regulations and other guidance as may be necessary or appropriate to carry out this subsection1 including any guidelines regarding the determination of wages1 average compensation1 and compensation ratio4 4 7b7 ,effective date ,the amendment made by subsection 7a7 shall apply to taxable years beginning after the date of the enactment of this ,act4 #c4 ,contracting preference for entities with certain pay ratios 7a7 ,amendment ,chapter #dg of title #da1 ,united ,states ,code1 is amended by inserting after section #dgab the following new section3 #dgae4 ,preference for entities with certain pay ratios 7a7 ,prohibition ,in the evaluation of bids or proposals for a contract for the procurement of goods or services1 the head of an executive agency shall provide a preference to an entity that for the previous calendar year has a compensation ratio of less than #ej-to-#a4 7b7 ,compensation ratio defined ,in this section1 the term compensation ratio has the meaning given that term in section #aa7;e77#c77;,a7 of the ,internal ,revenue ,code of #aihf1 except the ratio determined for the calendar year preceding the calendar year of the contract to which this section applies4 4 7b7 ,clerical amendment ,the table of sections at the beginning of such chapter is amended by inserting after the item relating to section #dgad the following new item3 #dgae4 ,preference for entities with certain pay ratios4 4