Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

# Stop Subsidizing Multimillion Dollar Corporate Bonuses Act (S 1576) **What the Bill Would Do** This bill would limit tax deductions for executive bonuses at large corporations. Specifically, it would prevent companies from deducting executive compensation (bonuses and other pay) that exceeds a certain threshold—likely making it more expensive for corporations to award very large executive bonuses since they couldn't offset these costs through tax breaks. **Who It Affects and Key Provisions** The bill primarily targets large corporations and their highest-paid executives. It's designed to address the concern that taxpayers effectively subsidize large executive bonuses through corporate tax deductions.

The reasoning is that when companies deduct these bonuses, it reduces their taxable income, lowering the taxes they owe—meaning the public indirectly helps pay for executive compensation. **Current Status** As of now, the bill remains in committee and has not advanced further in the legislative process. It was introduced by Senator Jack Reed (D-RI) in the current Congress but has not yet been voted on by the full Senate.