Sheldon Whitehouse (D-RI)
Curtailing Executive Overcompensation (CEO) Act
A Democratic bill with 5 Democratic cosponsors · See all 5 cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This legislation is titled the Curtailing Executive Overcompensation (CEO) Act and proposes adding a new chapter to the Internal Revenue Code of 1986. The bill specifically introduces an excise tax on certain employers who pay excessively disparate wages to their chief executive officers. Under the bill, an applicable employer is generally defined as a company with at least $100,000,000 in gross receipts and more than $10,000,000 paid in wages over a specific period. The tax applies when the ratio of the highest compensated employee's wages to the median wages of all applicable employees exceeds a certain threshold. The legislation also directs the Secretary to issue regulations to prevent the avoidance of these rules, such as through workforce manipulation or the use of contractors.
Yes· 3 of 12
- Scored +5
Does this raise the taxes companies pay?
The bill introduces an excise tax on certain large corporations with excessive CEO pay disparity.
- Scored +3
Does this raise taxes on the highest earners?
Imposing an excise tax on excessive executive compensation indirectly targets high-earning individuals.
- Scored +2
Would households on low incomes be better off under this?
Encourages companies to narrow the wage gap, potentially increasing compensation for lower-wage workers.
The opposite· 3 of 5
- Scored -3
Would high-income households be better off under this?
Imposes financial penalties on corporations with extremely high executive compensation ratios.
- Scored -3
Would people with substantial wealth be better off under this?
Executes tax penalties on excessive compensation packages typical of high-net-worth corporate leaders.
- Scored -3
Would the very wealthiest people be better off under this?
Directly penalizes the extreme end of executive compensation.
Who it would affect, and how
Potential Positive Impacts for People
- Section 2(a) introduces an excise tax on companies with extreme pay gaps between their highest-paid executive and their typical workers, which could encourage corporations to narrow the wage gap and direct more financial resources toward everyday employees.
Potential Negative Impacts for People
- Section 2(a) and Section 2(b) establish a new excise tax on certain employers that cannot be deducted from income taxes, which could potentially create a financial burden for businesses that may then pass those costs onto consumers or workers.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Economy And Finance
- Does this raise the taxes companies pay? — The bill introduces an excise tax on certain large corporations with excessive CEO pay disparity. Does this raise taxes on the highest earners? — Imposing an excise tax on excessive executive compensation indirectly targets high-earning individuals. Does this make the government pay for what it commits to? — The legislation introduces a tax aimed at addressing income inequality at the corporate level. Does this reduce what the federal government owes? — The new excise tax provides an additional revenue stream for the federal government.
- Demographic And Interest Groups
- Would households on low incomes be better off under this? — Encourages companies to narrow the wage gap, potentially increasing compensation for lower-wage workers. Would middle-income households be better off under this? — Aims to direct more corporate financial resources toward everyday employees. Would union members be better off under this? — Supports the broader labor goal of reducing executive pay disparity and lifting worker wages. Would people in middle age be better off under this? Would people in their twenties and thirties be better off under this? Would billionaires be better off under this? — Targets ultra-high executive pay structures prevalent among billionaires and top corporate earners. Would high-income households be better off under this? — Imposes financial penalties on corporations with extremely high executive compensation ratios. Would people with substantial wealth be better off under this? — Executes tax penalties on excessive compensation packages typical of high-net-worth corporate leaders. Would the very wealthiest people be better off under this? — Directly penalizes the extreme end of executive compensation. Would business owners be better off under this? — Large employers face new tax burdens and regulatory compliance requirements regarding executive pay.
- Governance And Ideology
- Does this make what the government does easier for the public to see? — It requires companies to monitor and disclose detailed wage disparity metrics. Does this give the federal government more power? — The bill establishes new federal tax regulations and reporting requirements for large corporations.
- Social Issues And Justice
- Is this likely to lift people out of poverty? — By discouraging extreme wage gaps, the bill aims to support better compensation for typical workers.
- 7/16/2026
- Read twice and referred to the Committee on Finance.
- 5 Cosponsors added.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Tammy BaldwinDemocrat · Wisconsin
Jeff MerkleyDemocrat · Oregon
Chris Van HollenDemocrat · Maryland
Peter WelchDemocrat · Vermont
Elizabeth WarrenDemocrat · Massachusetts