Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

Key Points

• This bill expands the existing $1 million cap on tax-deductible compensation. Right now, companies can only deduct the first $1 million paid to a handful of top executives. This bill would apply that same limit to every person who works for or provides services to the company, including contractors and consultants.
• The bill broadens which companies are covered. It would apply not only to publicly traded corporations but also to any company that was required to file reports with the SEC at any point during the prior three tax years.
• If enacted, the changes would take effect for tax years starting after December 31, 2024, meaning companies would see impacts beginning with their 2025 tax filings.
• The bill gives the Treasury Department authority to write new rules to prevent companies from dodging the cap by routing pay through pass-through entities or other workarounds.
• The bill was introduced by Rep. Doggett with 21 Democratic cosponsors and referred to the House Ways and Means Committee. It faces long odds in the current Congress given Republican control of the House.

Votes

No votes have been recorded for this legislation yet.