H.R. 3140, the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act, would expand tax rules that prevent large corporations from deducting excessive executive compensation from their taxes. Currently, U.S. tax law allows publicly traded companies to deduct unlimited executive pay only if it is "performance-based"; this bill broadens the restrictions to cover all forms of compensation for top executives and executives at any time in the past, not just current employees. The legislation also expands the rule to apply to any publicly traded company that has filed reports with the Securities and Exchange Commission at any point during the preceding three years, closing potential loopholes where compensation is paid through other entities. The changes would take effect for tax years beginning after December 31, 2024, and aim to reduce federal tax subsidies for corporate bonuses by preventing large deductions that ultimately shift tax burdens to ordinary taxpayers.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.