,,ii  #aah? ,,congress  #a/ ,session    
,s4 #cagf  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,novemb] #a1 #bjbc,mr4 
,:iteh\se 7= himself1 ,ms4 ,w>r51 & ,mr4
 ,m]kley7 introduc$ ! foll[+ bill2 :i* 0
 read twice & ref]r$ to ! ,committee on 
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to impose an      
excise tax on excessively disp>ate wages
 paid to *ief executive (fic]s4  #a4    
,%ort title ,?is ,act may be cit$ z !   
,curtail+ ,executive ,ov]comp5sation    
7,,ceo7 ,act4  #b4 ,excise tax on       
excessive *ief executive (fic] pay      
disp>ity  7a7 ,9 g5]al ,subtitle ,d ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new *apt]3    
#ej;,b ,pay disp>ity  ,sec4 #ejjj;,e4   
,excessive pay disp>ity4  #ejjj;,e4     
,excessive pay disp>ity  7a7 ,9 g5]al ,9
 ! case ( any employ] :i* is an         
applicable employ] = ! cal5d> ye>1 !re  
is h]eby impos$ a tax equal to ! less]  
(-- 7#a7 #a p]c5t ( ! product (-- 7,a7 !
 pay disp>ity factor ( ! applicable     

employ] = ! cal5d> ye>1 &  7,b7 ! excess
 (-- 7i7 am\nt det]m9$ "u subsection    
7c77#b77;,a7 = su* cal5d> ye>1 ov]  7ii7
 #e1jjj p]c5t ( ! am\nt det]m9$ "u      
subsection 7c77#b77;,b7 = su* cal5d>    
ye>1 or  7#b7 #a p]c5t ( ! gross        
receipts 7)9 ! mean+ ( section #ddh7;c77
 ( su* applicable employ]4  7b7         
,applicable employ]  7#a7 ,9 g5]al ,=   
purposes ( ?is section1 ! t]m applicable
 employ] means1 ) respect to any cal5d> 
ye>1 any employ] :i*-- 7,a7 has n less  
?an #ajj1jjj1jjj 9 gross receipts 7)9 ! 
mean+ ( section #ddh7;c77 = ea* ( ! #c  
cal5d> ye>s prec$+ su* cal5d> ye>1 &    
7,b7 has paid wages 9 excess (          
#aj1jjj1jjj = ea* cal5d> ye> 9 !        
#c-;cal5d>-ye> p]iod tak5 into acc\nt "u
 subp>agraph 7,a74  7#b7 ,aggregation   
rule ,= purposes ( ?is section1 ! rules 
( subsection 7a7 & 7b7 ( section #eb    
%all apply4  7#c7 ,pr$ecessors ,=       
purposes ( p>agraph 7#a77;,a71 rules    
simil> to ! rules ( section             
#ddh7;c77#c77;,d7 %all apply4  7#d7     

,inflation adju/m5t  7,a7 ,9 g5]al ,9 ! 
case ( any cal5d> ye> aft] #bjbd1 !     
#ajj1jjj1jjj am\nt "u p>agraph 7#a77;,a7
 & ! #aj1jjj1jjj am\nt "u p>agraph      
7#a77;,b7 %all ea* be increas$ by an    
am\nt equal to-- 7i7 su* doll> am\nt1   
multipli$ by  7ii7 ! co/-(-liv+ adju/m5t
 det]m9$ "u section #a7;f77#c7 = su*    
cal5d> ye>1 det]m9$ by sub/itut+ cal5d> 
ye> #bjbc = cal5d> ye> #bjaf 9          
subp>agraph 7,a77ii7 !re(4  7,b7 ,r\nd+ 
,! am\nt ( any increase "u clause 7i7   
%all be r\nd$ to ! ne>e/ multiple (     
#ajj1jjj4  7c7 ,pay disp>ity factor ,=  
purposes ( ?is section-- 7#a7 ,9 g5]al  
,! t]m pay disp>ity factor means1 )     
respect to any applicable employ] =     
cal5d> ye>1 ! excess 7if any7 (-- 7,a7 !
 pay disp>ity ratio ( su* employ] = su* 
cal5d> ye>1 ov]  7,b7 #ej4  7#b7 ,pay   
disp>ity ratio ,! t]m pay disp>ity ratio
 means1 ) respect to any applicable     
employ] = cal5d> ye>1 ! ratio (-- 7,a7 !
 av]age qualifi$ wages = ! #e-;cal5d>   
ye> p]iod end+ ) su* cal5d> ye> ( !     

individual :o is ! highe/ comp5sat$     
employee ( ! applicable employ] = su*   
cal5d> ye>1 to  7,b7 ! m$ian wages paid 
to all applicable employees ( !         
applicable employ] = su* cal5d> ye>4    
7#c7 ,wages2 qualifi$ wages  7,a7 ,wages
 ,! t]m wages has ! mean+ giv5 su* t]m  
"u section #cdja7;a71 det]m9$ )\t reg>d 
to p>agraph 7#h7 !re(4  7,b7 ,qualifi$  
wages  7i7 ,9 g5]al ,! t]m qualifi$     
wages means wages increas$ by-- 7,i7 any
 elective def]rals 7)9 ! mean+ ( section
 #djb7;g77#c77 n includ$ 9 wages1 &     
7,,ii7 any am\nts describ$ 9 section    
#dae7;c77#c77;,d77ii7 :i* are n includ$ 
9 wages4  7ii7 ,self-employ$ individuals
 & own]-employees ,9 ! case ( an        
employee 7)9 ! mean+ ( section          
#dja7;c77#a771 ! t]m qualifi$ wages     
includes ! e>n$ income 7z def9$ 9       
section #dja7;c77#b7 ( su* employee1 b  
det]m9$ )\t reg>d to any exclusion "u   
section #iaa7 ( su* employee4  7#d7     
,applicable employee ,= purposes ( ?is  
subsection-- 7,a7 ,9 g5]al ,! t]m       

applicable employee means any individual
 ^: wages 9 connection ) s]vices p]=m$ =
 ! applicable employ] = ! cal5d> ye> are
 equal to or m ?an #e1jjj4  7,b7        
,inflation adju/m5t  7i7 ,9 g5]al ,9 !  
case ( any cal5d> ye> aft] #bjbd1 !     
#e1jjj am\nt "u subp>agraph 7,a77ii7    
%all be increas$ by an am\nt equal to-- 
7,i7 su* doll> am\nt1 multipli$ by      
7,,ii7 ! co/-(-liv+ adju/m5t det]m9$ "u 
section #a7;f77#c7 = su* cal5d> ye>1    
det]m9$ by sub/itut+ cal5d> ye> #bjbc = 
cal5d> ye> #bjaf 9 subp>agraph 7,a77ii7 
!re(4  7ii7 ,r\nd+ ,! am\nt ( any       
increase "u clause 7i7 %all be r\nd$ to 
! ne>e/ multiple ( #ajj4  7d7 ,jo9t &   
sev]al liability ,if m ?an "o taxpay] is
 treat$ z a s+le employ] "u ?is section 
by reason ( subsection 7b77#b71 !n ea*  
su* taxpay] %all be jo9tly & sev]ally   
liable = ! tax impos$ by subsection 7a74
  7e7 ,regulations ,! ,secret>y %all    
issue regulations z necess>y to prev5t  
avoidance ( ! purposes ( ?is section1   
includ+ regulations to prev5t !         

manipulation ( ! pay disp>ity factor by 
*anges to ! composition ( ! work=ce     
7includ+ by us+ ! s]vices ( contractors 
r ?an employees74  4  7b7 ,no d$uction f
 income taxes ,section #bge7;a77#f7 ( ! 
,int]nal ,rev5ue ,code ( is am5d$ by    
ins]t+ #ej;,b1 aft] #ej;,a14  7c7       
,cl]ical am5dm5t ,! table ( *apt]s =    
subtitle ,d ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by add+ at ! end !      
foll[+ new item3  ,*apt] #ej;,b--,pay   
disp>ity  4  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4