A pair of Senate Democrats have introduced legislation to end unlimited tax write-offs on performance-based executive pay, allowing publicly traded corporations to deduct only up to $1 million in pay per employee.
Senators Jack Reed, D-R.I., and Richard Blumenthal, D-Conn., introduced the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act, S.1476, on Friday. They noted that in 1993, Congress limited the deductibility of certain executive pay to $1 million, with an exception for performance-based compensation. As a result, over the last two decades, compensation packages for top executives have often been structured to avoid paying taxes on corporate earnings.
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