,,ii #aahth ,,congress #ast ,session ,s4 #cagf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,november #a1 #bjbc,mr4 ,whitehouse 7for himself1 ,ms4 ,warren1 and ,mr4 ,merkley7 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 an excise tax on excessively disparate wages paid to chief executive officers4 #a4 ,short title ,this ,act may be cited as the ,curtailing ,executive ,overcompensation 7,,ceo7 ,act4 #b4 ,excise tax on excessive chief executive officer pay disparity 7a7 ,in general ,subtitle ,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new chapter3 #ej;,b ,pay disparity ,sec4 #ejjj;,e4 ,excessive pay disparity4 #ejjj;,e4 ,excessive pay disparity 7a7 ,in general ,in the case of any employer which is an applicable employer for the calendar year1 there is hereby imposed a tax equal to the lesser of-- 7#a7 #a percent of the product of-- 7,a7 the pay disparity factor of the applicable employer for the calendar year1 and 7,b7 the excess of-- 7i7 amount determined under subsection 7c77#b77;,a7 for such calendar year1 over 7ii7 #e1jjj percent of the amount determined under subsection 7c77#b77;,b7 for such calendar year1 or 7#b7 #a percent of the gross receipts 7within the meaning of section #ddh7;c77 of such applicable employer4 7b7 ,applicable employer 7#a7 ,in general ,for purposes of this section1 the term applicable employer means1 with respect to any calendar year1 any employer which-- 7,a7 has not less than #ajj1jjj1jjj in gross receipts 7within the meaning of section #ddh7;c77 for each of the #c calendar years preceding such calendar year1 and 7,b7 has paid wages in excess of #aj1jjj1jjj for each calendar year in the #c-;calendar-year period taken into account under subparagraph 7,a74 7#b7 ,aggregation rule ,for purposes of this section1 the rules of subsection 7a7 and 7b7 of section #eb shall apply4 7#c7 ,predecessors ,for purposes of paragraph 7#a77;,a71 rules similar to the rules of section #ddh7;c77#c77;,d7 shall apply4 7#d7 ,inflation adjustment 7,a7 ,in general ,in the case of any calendar year after #bjbd1 the #ajj1jjj1jjj amount under paragraph 7#a77;,a7 and the #aj1jjj1jjj amount under paragraph 7#a77;,b7 shall each be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year1 determined by substituting calendar year #bjbc for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,the amount of any increase under clause 7i7 shall be rounded to the nearest multiple of #ajj1jjj4 7c7 ,pay disparity factor ,for purposes of this section-- 7#a7 ,in general ,the term pay disparity factor means1 with respect to any applicable employer for calendar year1 the excess 7if any7 of-- 7,a7 the pay disparity ratio of such employer for such calendar year1 over 7,b7 #ej4 7#b7 ,pay disparity ratio ,the term pay disparity ratio means1 with respect to any applicable employer for calendar year1 the ratio of-- 7,a7 the average qualified wages for the #e-;calendar year period ending with such calendar year of the individual who is the highest compensated employee of the applicable employer for such calendar year1 to 7,b7 the median wages paid to all applicable employees of the applicable employer for such calendar year4 7#c7 ,wages2 qualified wages 7,a7 ,wages ,the term wages has the meaning given such term under section #cdja7;a71 determined without regard to paragraph 7#h7 thereof4 7,b7 ,qualified wages 7i7 ,in general ,the term qualified wages means wages increased by-- 7,i7 any elective deferrals 7within the meaning of section #djb7;g77#c77 not included in wages1 and 7,,ii7 any amounts described in section #dae7;c77#c77;,d77ii7 which are not included in wages4 7ii7 ,self-employed individuals and owner-employees ,in the case of an employee 7within the meaning of section #dja7;c77#a771 the term qualified wages includes the earned income 7as defined in section #dja7;c77#b7 of such employee1 but determined without regard to any exclusion under section #iaa7 of such employee4 7#d7 ,applicable employee ,for purposes of this subsection-- 7,a7 ,in general ,the term applicable employee means any individual whose wages in connection with services performed for the applicable employer for the calendar year are equal to or more than #e1jjj4 7,b7 ,inflation adjustment 7i7 ,in general ,in the case of any calendar year after #bjbd1 the #e1jjj amount under subparagraph 7,a77ii7 shall be increased by an amount equal to-- 7,i7 such dollar amount1 multiplied by 7,,ii7 the cost-of-living adjustment determined under section #a7;f77#c7 for such calendar year1 determined by substituting calendar year #bjbc for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7ii7 ,rounding ,the amount of any increase under clause 7i7 shall be rounded to the nearest multiple of #ajj4 7d7 ,joint and several liability ,if more than one taxpayer is treated as a single employer under this section by reason of subsection 7b77#b71 then each such taxpayer shall be jointly and severally liable for the tax imposed by subsection 7a74 7e7 ,regulations ,the ,secretary shall issue regulations as necessary to prevent avoidance of the purposes of this section1 including regulations to prevent the manipulation of the pay disparity factor by changes to the composition of the workforce 7including by using the services of contractors rather than employees74 4 7b7 ,no deduction from income taxes ,section #bge7;a77#f7 of the ,internal ,revenue ,code of is amended by inserting #ej;,b1 after #ej;,a14 7c7 ,clerical amendment ,the table of chapters for subtitle ,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,chapter #ej;,b--,pay disparity 4 7d7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4