,,ii  #aafth ,,congress  #ast ,session  
,s4 #bhdi  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,november #ac1 
#bjai,mr4 ,schumer 7for ,mr4 ,sanders   
7for himself and ,ms4 ,warren77         
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to impose a corporate tax rate    
increase on companies whose ratio of    
compensation of the ,,ceo or other      
highest paid employee to median worker  
compensation is more than #ej to #a1 and
 for other purposes4  #a4 ,short title  
,this ,act may be cited as the ,tax     
,excessive ,,ceo ,pay ,act of #bjai4    
#b4 ,corporate tax increase based on    
compensation ratio  7a7 ,in general     
,section #aa of the ,internal ,revenue  
,code of #aihf is amended by adding at  
the end the following new subsection3   
7e7 ,tax increase based on pay ratio    
7#a7 ,in general  7,a7 ,increase imposed
 ,in the case of any corporation 7except

 as provided in subparagraph            
7,b77ii77,,ii77 the pay ratio of which  
is greater than #ej to #a for a taxable 
year1 the #ba percent rate under        
subsection 7b7 for such taxable year    
shall be increased by the penalty       
determined under paragraph 7#b74  7,b7  
,pay ratio ,for purposes of this        
subsection-- 7i7 ,in general ,the term  
pay ratio means the ratio described in  
section #bbi4djb7u77#a77;iii7 of title  
#ag1 ,code of ,federal ,regulations 7or 
any successor thereto71 except that if  
the highest compensated employee of the 
corporation is not the principal        
executive officer1 the ratio shall be   
determined based on the compensation of 
such highest compensated employee4  7ii7
 ,corporations not subject to ,,sec     
filing ,in the case of a corporation    
which 7without regard to this clause7 is
 not subject to the authorities         
described in section #bbi4aj7;a7 of     
title #ag1 ,code of ,federal            
,regulations 7or any successor          

thereto7--  7,i7 ,large corporations ,if
 the average annual gross receipts of   
such corporation for the #c-taxable-year
 period ending with the taxable year    
which precedes such taxable year are at 
least #ajj1jjj1jjj1 such corporation    
shall calculate and report its pay ratio
 according to the method which the      
,secretary shall prescribe by           
regulations consistent with the         
regulation described in clause 7i74     
7,,ii7 ,other private corporations      
exempt ,subparagraph 7,a7 shall not     
apply to any such corporation if the    
average annual gross receipts of such   
corporation for the #c-taxable-year     
period ending with the taxable year     
which precedes such taxable year are    
less than #ajj1jjj1jjj4  7#b7 ,amount of
 penalty ,the penalty determined under  
this paragraph is an increase1 expressed
 in percentage points1 determined in    
accordance with the following table3 ,if
 the pay ratio is3,the increase         
is3,greater than #ej to #a1 but not     

greater than #ajj to #aj4e;,greater than
 #ajj to #a1 but not greater than #bjj  
to #aa;,greater than #bjj to #a1 but not
 greater than #cjj to #ab;,greater than 
#cjj to #a1 but not greater than #djj to
 #ac;,greater than #djj to #a1 but not  
greater than #ejj to #ad;,greater than  
#ejj to #ae4  4  7b7 ,conforming        
amendments  7#a7 ,the following sections
 of the ,internal ,revenue ,code of     
#aihf are each amended by inserting     
applicable to the corporation 7after the
 application of section #aa7;e77 after  
section #aa7;b73 7,a7 ,section          
#bhj;,c7c77#c77;,b77ii77,,ii74  7,b7    
,paragraphs 7#b77;,b7 and 7#f77;,a77ii7 
of section #hfj;,e7e74  7,c7 ,section   
#ghgd7;e77#a77;,b74  7#b7 ,section      
#heb7;b77#c77;,a7 of such ,code is      
amended by inserting 7after the         
application of section #aa7;e77 after   
section #aa7;b74  7#c7 ,paragraphs 7#a7 
and 7#b7 of section #adde7;e77#a7 of    
such ,code are each amended by striking 
in effect for the taxable year under    

section #aa7;b7 and inserting applicable
 to such corporation under section #aa  
for the taxable year4  7#d7 ,section    
#addf7;b77#b77;,b7 of such ,code is     
amended by striking specified in section
 #aa7;b7 and inserting applicable to    
such corporation under section #aa for  
the taxable year4  7c7 ,effective date  
,the amendments made by this section    
shall apply to taxable years beginning  
after ,december #ca1 #bjai4  7d7        
,regulations ,the ,secretary of the     
,treasury 7or the ,secretary's delegate7
 shall issue regulations as necessary to
 prevent avoidance of the purposes of   
the amendments made by subsection 7a71  
including regulations to prevent the    
manipulation of the compensation ratio  
under section #aa7;e7 of the ,internal  
,revenue ,code of #aihf by changes to   
the composition of the workforce        
7including by using the services of     
contractors rather than employees74