Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

# Stop Subsidizing Multimillion Dollar Corporate Bonuses Act (HR 3140) Summary **What the Bill Would Do:** This bill would limit the federal tax deduction that corporations can claim for executive bonuses. Currently, companies can deduct executive compensation expenses from their taxable income, which effectively reduces the taxes they owe. This bill would cap that deduction, making it more expensive for corporations to claim large executive bonuses as a business expense to the federal government. **Who It Affects and Key Provisions:** The bill primarily affects large corporations with highly-paid executives. By restricting the tax deduction, it would increase the after-tax cost to companies that pay multimillion-dollar bonuses to top executives.

The stated intent is to discourage excessive executive compensation by removing a tax advantage that currently subsidizes such bonuses. Employees, shareholders, and federal taxpayers could potentially be affected depending on how companies adjust their practices in response. **Current Status:** The bill was introduced in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives. It has not advanced to become law.