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| | HR0553 | | LRB098 13069 GRL 47582 r |
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1 | | HOUSE RESOLUTION
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2 | | WHEREAS, Despite the current instability of the economy, |
3 | | times in which income inequality rises and middle-class wages |
4 | | stagnate, American taxpayers are subsidizing tens of billions |
5 | | of dollars in corporate bonuses; and
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6 | | WHEREAS, In 1993, Congress capped the deductibility of |
7 | | certain executive pay to $1 million; however, the law allowed |
8 | | an exception for performance-based pay, including stock |
9 | | options, non-equity incentive plans, and stock appreciation |
10 | | rights, as part of Section 162(m) of the Internal Revenue Code; |
11 | | as a result of the law, more executive compensation packages |
12 | | have been structured to meet the performance-based exception as |
13 | | a way to avoid paying taxes on corporate earnings; and
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14 | | WHEREAS, On August 1, 2013, United States Senators Jack |
15 | | Reed (D-RI) and Richard Blumenthal (D-CT) introduced a bill |
16 | | that would address these inequities; and
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17 | | WHEREAS, The Stop Subsidizing Multimillion Dollar |
18 | | Corporate Bonuses Act would limit the tax deductibility of |
19 | | executive pay to $1 million and eliminate the exception for |
20 | | commission-based and performance-based compensation; the Act |
21 | | would also expands the restrictions to all current and former |
22 | | employees of all corporations that file periodic reports with |