CEO Accountability and Responsibility Act

HR 1284, the CEO Accountability and Responsibility Act, modifies corporate tax rates for publicly traded companies based on their CEO-to-median-employee pay ratio. It increases the tax rate for corporations where CEO pay exceeds median worker pay by more than 100:1, with higher ratios triggering larger tax adjustments (e.g., ratios over 400:1 increase taxes by 3 percentage points). The bill also penalizes companies that reduce U.S. full-time staff by over 10% while increasing contractors or foreign employees, raising the tax adjustment by 50%. Additionally, it gives federal procurement preference to companies with a pay ratio under 50:1 when bidding for government contracts. These provisions directly affect large corporations subject to U.S. corporate income tax and federal contractors.