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This bill amends the Internal Revenue Code to impose a corporate tax rate increase on companies with a CEO-to-median-worker pay ratio exceeding 50-to-1. The increase ranges from 0.5 percentage points (for ratios between 50-to-1 and 100-to-1) up to 5 percentage points (for ratios exceeding 500-to-1), applied on top of the current 21% corporate tax rate. The bill applies to publicly traded corporations and large private corporations with average annual gross receipts of at least $100 million, using a 5-year average of compensation amounts to calculate the ratio. The Treasury Department is directed to issue regulations to prevent avoidance through workforce composition changes.
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