Referred to the House Committee on Ways and Means.
The bill amends Internal Revenue Code section 162(m) to broaden which employees are treated as “covered individuals” for the statute that limits deductions for excessive employee remuneration. It expands coverage to essentially any individual who performs services for the taxpayer (with transitional language for certain prior years), widens the definition of a publicly held corporation to include certain 15(d) filers, grants Treasury authority to issue regulations (including anti-avoidance rules for pass-throughs), and makes the changes effective for taxable years beginning after December 31, 2024.
Liberals focus on tax fairness and ending subsidies for high pay
Relative to its intended legislative type, this bill is a clear and legally specific statutory amendment that integrates with existing tax law and grants regulatory authority, but it omits fiscal impact acknowledgment, granular implementation procedures, and specific measurement or reporting provisions.
The bill amends Internal Revenue Code section 162(m) to broaden which employees are treated as “covered individuals” for the statute that limits deductions for excessive employee remuneration.
It expands coverage to essentially any individual who performs services for the taxpayer (with transitional language for certain prior years), widens the definition of a publicly held corporation to include certain 15(d) filers, grants Treasury authority to issue regulations (including anti-avoidance rules for pass-throughs), and makes the changes effective for taxable years beginning after December 31, 2024.
Large, economy-wide tax change expanding deduction denial is controversial, invites business pushback, and lacks compromise features.
Relative to its intended legislative type, this bill is a clear and legally specific statutory amendment that integrates with existing tax law and grants regulatory authority, but it omits fiscal impact acknowledgment, granular implementation procedures, and specific measurement or reporting provisions.
Liberals focus on tax fairness and ending subsidies for high pay
These are examples from the analysis, not a ranked list of the most-affected groups.
Liberals focus on tax fairness and ending subsidies for high pay
Likely supportive: views the bill as a targeted reform to stop tax deductions that effectively subsidize very large corporate pay packages.
Sees it as advancing tax fairness and reducing incentives for excessive executive bonuses.
Some technical implementation questions remain but the overall aim aligns with progressive priorities.
Cautiously open: recognizes the goal of limiting taxpayer subsidies for very large pay but worries about administration, unintended avoidance, and competitiveness.
Would favor careful implementation, clear definitions, and monitoring of economic effects.
Likely opposed: views the bill as governmental intrusion into private compensation and an effective tax increase on businesses.
Concerns include harm to competitiveness, economic distortions, and expanded tax complexity.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Large, economy-wide tax change expanding deduction denial is controversial, invites business pushback, and lacks compromise features.
The bill has not accumulated any surfaced votes yet.
Liberals focus on tax fairness and ending subsidies for high pay
Large, economy-wide tax change expanding deduction denial is controversial, invites business pushback, and lacks compromise features.
Relative to its intended legislative type, this bill is a clear and legally specific statutory amendment that integrates with existing tax law and grants regulatory authority, but it omits fiscal impact acknowledgment,…
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