[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 382 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 382

 To amend the Internal Revenue Code of 1986 to limit the deductibility 
             of excessive rates of executive compensation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 20, 2011

  Ms. Lee of California (for herself and Ms. Woolsey) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to limit the deductibility 
             of excessive rates of executive compensation.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Income Equity Act of 2011''.

SEC. 2. DENIAL OF DEDUCTION FOR PAYMENTS OF EXCESSIVE COMPENSATION.

    (a) In General.--Section 162 of the Internal Revenue Code of 1986 
(relating to deduction for trade or business expenses) is amended by 
inserting after subsection (h) the following new subsection:
    ``(i) Excessive Compensation.--
            ``(1) In general.--No deduction shall be allowed under this 
        chapter for any excessive compensation with respect to any 
        full-time employee.
            ``(2) Excessive compensation.--For purposes of this 
        subsection, the term `excessive compensation' means, with 
        respect to any employee, the amount by which--
                    ``(A) the compensation for services performed by 
                such employee during the taxable year, exceeds
                    ``(B) the greater of--
                            ``(i) an amount equal to 25 times the 
                        lowest compensation for services performed by 
                        any other full-time employee during such 
                        taxable year, or
                            ``(ii) $500,000.
            ``(3) Definitions and special rules.--For purposes of this 
        subsection--
                    ``(A) Compensation.--
                            ``(i) In general.--The term `compensation' 
                        includes wages, salary, deferred compensation, 
                        retirement contributions, options, bonuses, 
                        property, and any other form of compensation or 
                        bonus that the Secretary of the Treasury 
                        determines is appropriate.
                            ``(ii) Part-year employees.--In the case of 
                        any part-year employee, the compensation of the 
                        employee shall be computed on an annualized 
                        basis.
                    ``(B) Employer.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as 1 employer.
            ``(4) Reporting.--Each employer who provides compensation 
        in any taxable year to any employee in an amount which is more 
        than 25 times the amount of the lowest-compensated full-time 
        employee, shall file a report with the Secretary containing--
                    ``(A) the compensation of the lowest-compensated 
                full-time employee,
                    ``(B) the average pay of all non-managerial 
                employees,
                    ``(C) the average pay of all executive staff, and
                    ``(D) the exact compensation of the top 5 employees 
                of the company.
        Any such report shall be filed at such time and in such manner 
        as the Secretary may require.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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