,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bhdi  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #ac1 #bjai,mr4
 ,s*um] 7= ,mr4 ,s&]s 7= himself & ,ms4 
,w>r577 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to impose a       
corporate tax rate increase on companies
 ^: ratio ( comp5sation ( ! ,,ceo or o!r
 highe/ paid employee to m$ian work]    
comp5sation is m ?an #ej to #a1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,tax ,excessive ,,ceo ,pay 
,act ( #bjai4  #b4 ,corporate tax       
increase bas$ on comp5sation ratio  7a7 
,9 g5]al ,section #aa ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7e7  
,tax increase bas$ on pay ratio  7#a7 ,9
 g5]al  7,a7 ,increase impos$ ,9 ! case 
( any corporation 7except z provid$ 9   
subp>agraph 7,b77ii77,,ii77 ! pay ratio 
( :i* is great] ?an #ej to #a = a       
taxable ye>1 ! #ba p]c5t rate "u        

subsection 7b7 = su* taxable ye> %all be
 increas$ by ! p5alty det]m9$ "u        
p>agraph 7#b74  7,b7 ,pay ratio ,=      
purposes ( ?is subsection-- 7i7 ,9 g5]al
 ,! t]m pay ratio means ! ratio describ$
 9 section #bbi4djb7u77#a77;iii7 ( title
 #ag1 ,code ( ,f$]al ,regulations 7or   
any successor !reto71 except t if !     
highe/ comp5sat$ employee ( !           
corporation is n ! pr9cipal executive   
(fic]1 ! ratio %all be det]m9$ bas$ on !
 comp5sation ( su* highe/ comp5sat$     
employee4  7ii7 ,corporations n subject 
to ,,sec fil+ ,9 ! case ( a corporation 
:i* 7)\t reg>d to ?is clause7 is n      
subject to ! au?orities describ$ 9      
section #bbi4aj7;a7 ( title #ag1 ,code (
 ,f$]al ,regulations 7or any successor  
!reto7--  7,i7 ,l>ge corporations ,if ! 
av]age annual gross receipts ( su*      
corporation = ! #c-taxable-ye> p]iod    
end+ ) ! taxable ye> :i* prec$es su*    
taxable ye> are at lea/ #ajj1jjj1jjj1   
su* corporation %all calculate & report 
its pay ratio accord+ to ! me?od :i* !  

,secret>y %all prescribe by regulations 
consi/5t ) ! regulation describ$ 9      
clause 7i74  7,,ii7 ,o!r private        
corporations exempt ,subp>agraph 7,a7   
%all n apply to any su* corporation if !
 av]age annual gross receipts ( su*     
corporation = ! #c-taxable-ye> p]iod    
end+ ) ! taxable ye> :i* prec$es su*    
taxable ye> are less ?an #ajj1jjj1jjj4  
7#b7 ,am\nt ( p5alty ,! p5alty det]m9$  
"u ?is p>agraph is an increase1 express$
 9 p]c5tage po9ts1 det]m9$ 9 accordance 
) ! foll[+ table3 ,if ! pay ratio is3,! 
increase is3,great] ?an #ej to #a1 b n  
great] ?an #ajj to #aj4e;,great] ?an    
#ajj to #a1 b n great] ?an #bjj to      
#aa;,great] ?an #bjj to #a1 b n great]  
?an #cjj to #ab;,great] ?an #cjj to #a1 
b n great] ?an #djj to #ac;,great] ?an  
#djj to #a1 b n great] ?an #ejj to      
#ad;,great] ?an #ejj to #ae4  4  7b7    
,con=m+ am5dm5ts  7#a7 ,! foll[+        
sections ( ! ,int]nal ,rev5ue ,code (   
#aihf are ea* am5d$ by ins]t+ applicable
 to ! corporation 7aft] ! application ( 

section #aa7;e77 aft] section #aa7;b73  
7,a7 ,section                           
#bhj;,c7c77#c77;,b77ii77,,ii74  7,b7    
,p>agraphs 7#b77;,b7 & 7#f77;,a77ii7 (  
section #hfj;,e7e74  7,c7 ,section      
#ghgd7;e77#a77;,b74  7#b7 ,section      
#heb7;b77#c77;,a7 ( su* ,code is am5d$  
by ins]t+ 7aft] ! application ( section 
#aa7;e77 aft] section #aa7;b74  7#c7    
,p>agraphs 7#a7 & 7#b7 ( section        
#adde7;e77#a7 ( su* ,code are ea* am5d$ 
by /rik+ 9 effect = ! taxable ye> "u    
section #aa7;b7 & ins]t+ applicable to  
su* corporation "u section #aa = !      
taxable ye>4  7#d7 ,section             
#addf7;b77#b77;,b7 ( su* ,code is am5d$ 
by /rik+ specifi$ 9 section #aa7;b7 &   
ins]t+ applicable to su* corporation "u 
section #aa = ! taxable ye>4  7c7       
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjai4  7d7   
,regulations ,! ,secret>y ( ! ,treasury 
7or ! ,secret>y's delegate7 %all issue  
regulations z necess>y to prev5t        

avoidance ( ! purposes ( ! am5dm5ts made
 by subsection 7a71 includ+ regulations 
to prev5t ! manipulation ( ! comp5sation
 ratio "u section #aa7;e7 ( ! ,int]nal  
,rev5ue ,code ( #aihf by *anges to !    
composition ( ! work=ce 7includ+ by us+ 
! s]vices ( contractors r ?an           
employees74