I 
117TH CONGRESS 
1ST SESSION H. R. 3301 
To amend the Internal Revenue Code of 1986 to adjust the rate of income 
tax of a publicly traded corporation based on the ratio of compensation 
of the corporation’s highest paid employee to the median compensation 
of all the corporation’s employees, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 18, 2021 
Mr. DESAULNIER introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Oversight and Reform, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to adjust 
the rate of income tax of a publicly traded corporation 
based on the ratio of compensation of the corporation’s 
highest paid employee to the median compensation of 
all the corporation’s employees, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘CEO Accountability 
and Responsibility Act’’. 
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SEC. 2. INCOME TAX RATE OF PUBLICLY TRADED COR-
PORATIONS 
BASED 
ON 
COMPENSATION 
RATIO. 
(a) IN GENERAL.—Section 11 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following: 
‘‘(e) TAX RATE OF PUBLICLY TRADED CORPORA-
TIONS BASED ON COMPENSATION RATIO.— 
‘‘(1) IN GENERAL.—In the case of a publicly 
traded 
corporation 
(as 
defined 
in 
section 
162(m)(2)), in the amount of tax under subsection 
(b) shall be determined— 
‘‘(A) by adjusting the highest rate of tax 
applicable to the taxpayer by the percentage 
point adjustment specified in paragraph (2), 
and 
‘‘(B) by making proper adjustments to— 
‘‘(i) the dollar amount in clause (ii) of 
the second sentence of paragraph (1), and 
‘‘(ii) the dollar amount in clause (ii) 
of the third sentence of paragraph (1). 
‘‘(2) ADJUSTMENT
OF
TAX
RATE.—For pur-
poses of paragraph (1), the percentage points speci-
fied in this paragraph shall be determined as follows: 
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‘‘If the compensation ratio is: 
The percentage point 
adjustment is: 
More than 100 but not more than 150 ........
+0.5 percentage points
More than 150 but not more than 200 ........
+1 percentage points
More than 200 but not more than 250 ........
+1.5 percentage points
More than 250 but not more than 300 ........
+2 percentage points
More than 300 but not more than 400 ........
+2.5 percentage points
More than 400 ..............................................
+3 percentage points. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) COMPENSATION
RATIO.—The term 
‘compensation ratio’ means, with respect to any 
taxable year, a ratio— 
‘‘(i) the numerator of which is the 
amount equal to the greater of the com-
pensation of the chief executive officer or 
the highest paid employee of the taxpayer 
for the calendar year preceding the begin-
ning of the taxable year, and 
‘‘(ii) the denominator of which is the 
amount equal to the median compensation 
of all employees employed by the taxpayer 
in the United States for the calendar year 
preceding the beginning of the taxable 
year. 
‘‘(B) COMPENSATION.— 
‘‘(i) EMPLOYEES.—In the case of em-
ployees of the taxpayer other than the 
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chief executive officer or the highest paid 
employee, the term ‘compensation’ means 
wages (as defined in section 3121(a)) paid 
by the taxpayer during a calendar year. 
‘‘(ii) CEO AND
HIGHEST
PAID
EM-
PLOYEE.—In the case of the chief execu-
tive officer and the highest paid employee 
of the taxpayer, the term ‘compensation’ 
means total compensation for the calendar 
year, as reported in the Summary Com-
pensation Table reported to the Securities 
and Exchange Commission pursuant to 
Item 402 of Regulation S–K of the Securi-
ties and Exchange Commission. 
‘‘(4) SPECIAL RULE IF CONTRACTED OR FOR-
EIGN EMPLOYEE RATIO INCREASES.— 
‘‘(A) IN GENERAL.—If— 
‘‘(i) the total number of full-time em-
ployees, determined on an annual full-time 
equivalent basis, employed by the taxpayer 
in the United States for a taxable year is 
reduced by more than 10 percent, as com-
pared to the total number of full-time em-
ployees, determined on an annual full-time 
equivalent basis, employed by the taxpayer 
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in the United States for the preceding tax-
able year, and 
‘‘(ii) the total number of contracted 
employees or foreign full-time employees, 
determined on an annual full-time equiva-
lent basis, of the taxpayer for that taxable 
year has increased, as compared with the 
total number of contracted employees or 
foreign full-time employees, determined on 
an annual full-time equivalent basis, of the 
taxpayer for the preceding taxable year, 
then the applicable tax rate determined under 
paragraph (2) shall be increased by 50 percent. 
For taxpayers who first commence doing busi-
ness during the taxable year, the number of 
full-time employees, contracted employees, and 
foreign full-time employees for the immediately 
preceding prior taxable year shall be zero. 
‘‘(B) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) ANNUAL
FULL-TIME
EQUIVA-
LENT.—The term ‘annual full-time equiva-
lent’ means— 
‘‘(I) in the case of a full-time em-
ployee paid hourly qualified wages, the 
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