# 119-s-1576: Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

119-s-1576, Stop Subsidizing Multimillion Dollar Corporate Bonuses Act, is a 119th Congress bill sponsored by Sen. Reed, Jack [D-RI] (D-RI); status introduced; PRIA reads it as touching household money (as of 2025-12-21).

- Canonical: https://policyrisk.com/legislation/119-s-1576
- As of: 2025-12-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-1576
- Congress: 119
- Title: Stop Subsidizing Multimillion Dollar Corporate Bonuses Act
- Status: introduced
- Introduced: 2025-05-01
- Sponsor: Sen. Reed, Jack [D-RI] (D-RI)
- Cosponsors: 8
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2025-12-21

## Summary

**Broadens the rule that denies corporate tax deductions for excessive executive pay.** The bill would widen who counts as a covered person and what pay can be treated as non‑deductible, targeting more high-paid individuals tied to publicly held companies and giving the Treasury new rulemaking authority. - Publicly held corporations: Employers that meet the bill's new filing test could lose deductions for a wider set of compensation, changing which firms are covered by using a 3-taxable-year filing test and applying to tax years beginning in 2025. - High-paid individuals and service providers: "Covered individual" would reach more people who perform services for the company and certain past top officers who were among the 3 highest compensated, so more pay could be denied as a corporate deduction. - Tax administration: The Secretary could issue guidance and rules on reporting and on steps to prevent avoidance, including measures aimed at pay routed through pass-throughs or related entities.

## Cosponsors (8)

- Sen. Blumenthal, Richard [D-CT] (D-CT), 2025-05-01T00:00:00.000Z
- Sen. Baldwin, Tammy [D-WI] (D-WI), 2025-05-01T00:00:00.000Z
- Sen. Warren, Elizabeth [D-MA] (D-MA), 2025-05-01T00:00:00.000Z
- Sen. Merkley, Jeff [D-OR] (D-OR), 2025-05-01T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2025-05-01T00:00:00.000Z
- Sen. Sanders, Bernard [I-VT] (I-VT), 2025-05-01T00:00:00.000Z
- Sen. Whitehouse, Sheldon [D-RI] (D-RI), 2025-05-01T00:00:00.000Z
- Sen. Alsobrooks, Angela D. [D-MD] (D-MD), 2025-12-02T00:00:00.000Z

## Provisions PRIA read

- Tighter limits on corporate pay deductions: cost, high. This bill would broaden which pay a public company cannot deduct. It would replace terms like “employee” with “individual” and expand who counts as a covered individual. Covered individuals would include anyone performing services for the company for tax years starting after December 31, 2024. It w…
- New test for public companies: cost, medium. This bill would change which firms count as publicly held for the executive‑pay deduction rules. The test would look at whether the firm was required to file reports under section 15(d) at any time during the three taxable years ending with the applicable year. It would apply for tax years starting…
- Treasury rulemaking for executive pay: cost, low. This bill would let the Treasury issue rules and guidance to carry out the deduction limits. The authority includes rules on reporting and steps to stop avoidance through pass‑throughs or other entities. It would apply for tax years starting after December 31, 2024. If enacted, some firms could fac…
- Minor technical change to deduction rule: mixed, low. This bill would strike a technical subparagraph from the executive‑pay deduction rule as a conforming edit. The change is textual and would apply for tax years starting after December 31, 2024. If enacted, the direct effects would likely be small and mostly technical.

## Related bills

- 119-s-3990: PrEP Access and Coverage Act of 2026
- 119-s-2823: FAMILY Act
- 119-s-2763: Keep Billionaires Out of Social Security Act
- 119-s-3869: Healthy Families Act
- 119-s-51: Washington, D.C. Admission Act
- 119-s-5108: Right to IVF Act of 2026

## Sources
- [119-s-1576 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/1576)

## Related
- [119-s-3990: PrEP Access and Coverage Act of 2026](https://policyrisk.com/legislation/119-s-3990)
- [119-s-2823: FAMILY Act](https://policyrisk.com/legislation/119-s-2823)
- [119-s-2763: Keep Billionaires Out of Social Security Act](https://policyrisk.com/legislation/119-s-2763)
- [119-s-3869: Healthy Families Act](https://policyrisk.com/legislation/119-s-3869)
- [119-s-51: Washington, D.C. Admission Act](https://policyrisk.com/legislation/119-s-51)
- [119-s-5108: Right to IVF Act of 2026](https://policyrisk.com/legislation/119-s-5108)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-1576 (as of 2025-12-21).