Tax Excessive CEO Pay Act of 2025

# Tax Excessive CEO Pay Act of 2025 - Summary **What the Bill Would Do** The Tax Excessive CEO Pay Act of 2025 would impose additional federal taxes on corporations that pay their chief executive officers (CEOs) very high salaries relative to their average workers. Specifically, the bill would create a tax penalty for companies where the CEO-to-worker pay ratio exceeds a certain threshold, meaning companies where executives earn significantly more than typical employees would face higher tax obligations. **Who It Affects and Key Details** This legislation would primarily affect large corporations with the highest executive compensation levels. Workers could potentially benefit indirectly if companies reduce excessive executive pay to avoid the tax penalty, though the bill's direct impact would be on corporate tax liability.

The bill targets income inequality by using the tax code to discourage extreme pay disparities between leadership and average employees. **Current Status** As of now, S 2818 remains in committee, meaning it has not yet been debated or voted on by the full Senate. The bill was introduced by Senator Bernie Sanders (I-VT). Like most bills introduced in Congress, it faces an uncertain path forward and would require committee approval, Senate floor votes, House consideration, and presidential signature to become law.