Us Congress 2023-2024 Regular Session

Us Congress House Bill HB324

Introduced
1/12/23  

Caption

Stop Subsidizing Multimillion Dollar Corporate Bonuses Act This bill extends the $1 million limit on the deductibility of executive compensation to all employees of publicly traded corporations.

Impact

The implications of HB 324 are substantial for corporations and their financial practices. By removing the preferential tax treatment of excessive salaries that previously applied predominantly to top executives, the bill could lead to a realignment of compensation structures within corporations. Supporters argue that this change would discourage exorbitant salary packages and promote more equitable pay practices. Companies may need to reassess their salary structures to align with the new tax regulations, which could foster a more sustainable and responsible approach to employee remuneration.

Summary

House Bill 324, officially titled the 'Stop Subsidizing Multimillion Dollar Corporate Bonuses Act', seeks to amend the Internal Revenue Code of 1986 by expanding the existing limitations on the deductibility of excessive employee remuneration. The primary aim of the bill is to extend the $1 million cap on the deductibility of executive compensation to include all employees of publicly traded corporations, thus broadening the scope of the existing legislation. This represents a significant shift in how corporate remuneration can be treated for tax purposes, reflecting ongoing concerns about income inequality and corporate governance.

Contention

The bill is likely to generate debate among various stakeholders. Proponents, including some lawmakers and advocacy groups, push for the measure as a necessary reform to reduce corporate excess and promote accountability. In contrast, opponents may argue that this legislation could hinder corporations’ ability to attract and retain talent, particularly in competitive sectors. There is also a concern that by broadly applying these restrictions, the bill may inadvertently impact middle and lower-tier employees who could be affected by a tightening of overall compensation budgets. The discussion surrounding HB 324 thus encapsulates a broader dialogue about the role of corporate governance and social responsibility.

Companion Bills

US SB3155

Related bill Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

Previously Filed As

US HB3140

Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

US SB1576

Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

US SB3155

Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

US HB160

SALT Fairness Act of 2023 This bill repeals the temporary restrictions in taxable years 2018 through 2025 on the deductibility of state and local taxes.

US HB2555

SALT Deductibility Act Securing Access to Lower Taxes by ensuring Deductibility Act

US HB368

American Innovation Act of 2023 This bill revises the tax treatment of business start-up or organizational expenditures. Specifically, it allows an election to deduct such expenditures in an amount equal to the lesser of the aggregate amount of such expenditures incurred by an active trade of business, or $20,000, reduced by the amount by which such aggregate amount exceeds $120,000. The remaining amount of such expenditures shall be amortized over the 180 month period after the trade or business begins. The bill also revises the tax treatment of partnership syndication fees and start-up net operating losses and tax credits after an ownership change.

US HB108

Small Business Prosperity Act of 2023 This bill modifies the tax deduction for qualified business income to (1) make such deduction permanent, (2) limit to 21% the top tax rate on qualified business income, (3) repeal the limitation on the deduction based on amount of wages paid, and (4) revise the definition of qualified trade or business to mean any trade or business other than the trade of business of performing services as an employee. The bill provides that a change in the organizational structure of a corporation is not a taxable event if there is no change among the owners, their ownership interests, or the assets of the organization, The bill repeals the estate tax after 2022.

US SB56

Education Freedom Scholarships and Opportunity Act This bill allows individual and corporate taxpayers a tax credit for cash contributions to certain scholarship-granting and workforce training organizations. It imposes a cap of $10 billion on the sum of contributions that qualify for a tax credit under this bill. The bill requires the Department of Education, in coordination with the Departments of the Treasury and Labor, to establish, host, and maintain a web portal that (1) lists all eligible scholarship-granting and workforce training organizations; (2) enables contributions to such organizations; (3) provides information about the benefits of this bill; and (4) enables a state to submit and update information about its programs and educational organizations, including information on student eligibility and allowable educational expenses.

US HB227

Federal Employee Combat Zone Tax Parity Act This bill excludes from gross income, for income tax purposes, the compensation of a federal employee who served in a combat zone or was hospitalized as a result of wounds, disease, or injury incurred while serving in a combat zone. The bill terminates the exclusion two years after the end of combatant activities in such zone.

US HB34

Assuring Medicare’s Promise Act of 2023 This bill increases net investment income tax revenues by applying such tax to the trade or business income of certain high income taxpayers and includes the increased tax revenues in the Federal Hospital Insurance Trust Fund.

Similar Bills

No similar bills found.