Jack Reed: “I am reintroducing the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act with Senators Blumenthal, Whitehouse…”

“I am reintroducing the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act with Senators Blumenthal, Whitehouse, Merkley, Baldwin, Warren, Van Hollen, and Sanders. This legislation would finally fully close a loophole that allows publicly traded corporations to deduct the cost of multimillion-dollar bonuses from their corporate tax bills. At a time when the gulf in pay between CEOs and average workers is 272 to 1, it is infuriating that U.S. taxpayers are being forced to subsidize lavish executive compensation packages, but that is what is happening. Under section 162(m) of the Tax Code, publicly traded corporations cannot deduct more than $1 million in compensation paid to their top executives. But section 162(m) does not cover compensation paid to all public company employees, and corporations have long exploited this loophole to claim tax deductions for executive compensation packages that far exceed $1 million. Indeed, publicly traded corporations are offering these lucrative compensation deals to ever increasing numbers of executives--not just a few at the very top of the organization. Both Republican and Democratic administrations have recognized the need to close loopholes in section 162(m). Indeed, both President Trump and President Biden signed laws based on earlier versions of my legislation in order to curtail the abuse of this deduction.…”