# 119-s-2818: Tax Excessive CEO Pay Act of 2025

119-s-2818, Tax Excessive CEO Pay Act of 2025, is a 119th Congress bill sponsored by Sen. Sanders, Bernard [I-VT] (I-VT); status introduced; PRIA reads it as touching household money (as of 2026-04-21).

- Canonical: https://policyrisk.com/legislation/119-s-2818
- As of: 2026-04-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2818
- Congress: 119
- Title: Tax Excessive CEO Pay Act of 2025
- Status: introduced
- Introduced: 2025-09-16
- Sponsor: Sen. Sanders, Bernard [I-VT] (I-VT)
- Cosponsors: 5
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-04-21

## Summary

**This bill raises the corporate income tax for firms with very high CEO-to-worker pay ratios.** It adds a pay-ratio–based penalty to the 21 percent corporate rate that kicks in when a firm's pay ratio exceeds 50-to-1 and applies to tax years beginning after December 31, 2025. - Corporations: Companies with pay ratios above 50-to-1 face an extra corporate tax. The penalty scales from +0.5 percentage points for ratios up to 100-to-1 to +5 percentage points for ratios above 500-to-1. - Workers and households: The law is designed to deter excessive CEO pay relative to median worker pay by making large pay gaps more costly for employers. It measures compensation using a five-year annualized average and uses the highest-paid employee if that person is not the CEO. - Tax administration and rules: Large private firms with average annual gross receipts of $100 million or more must calculate and report the ratio under Treasury guidance. The Secretary of the Treasury must issue regulations to prevent avoidance tactics such as shifting workers to contractor status.

## Cosponsors (5)

- Sen. Warren, Elizabeth [D-MA] (D-MA), 2025-09-16T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2025-09-16T00:00:00.000Z
- Sen. Markey, Edward J. [D-MA] (D-MA), 2025-09-16T00:00:00.000Z
- Sen. Welch, Peter [D-VT] (D-VT), 2025-09-16T00:00:00.000Z
- Sen. Merkley, Jeff [D-OR] (D-OR), 2025-10-03T00:00:00.000Z

## Provisions PRIA read

- Higher corporate tax for high pay ratios: cost, medium. If enacted, this bill would raise a corporation's 21% tax rate when its executive-to-worker pay ratio is over 50 to 1. The rate would increase by set amounts: over 50–100: +0.5 percentage points; over 100–200: +1; over 200–300: +2; over 300–400: +3; over 400–500: +4; over 500: +5. The pay ratio wou…

## Related bills

- 119-s-2819: Head Start for America's Children Act
- 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

## Sources
- [119-s-2818 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2818)

## Related
- [119-s-2819: Head Start for America's Children Act](https://policyrisk.com/legislation/119-s-2819)
- [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)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2818 (as of 2026-04-21).