Tax Excessive CEO Pay Act of 2024

HR 7041, the Tax Excessive CEO Pay Act of 2024, imposes a corporate tax penalty on large companies where the CEO's pay exceeds 50 times the average worker's pay. The penalty adds 0.5% to 5% to the corporate tax rate, depending on how much higher the CEO's pay is relative to workers (e.g., 50-100:1 ratio adds 0.5%, over 500:1 adds 5%). It applies only to corporations with over $100 million in average annual revenue, exempting smaller businesses. The law aims to address extreme pay disparities by increasing taxes on companies with the highest CEO-to-worker pay ratios, effective for tax years after 2024.