# Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

This bill would change the tax rules around how much companies can deduct from their taxes when they pay executive bonuses. Right now, companies can write off executive compensation as a business expense, which reduces the taxes they owe. This bill would limit that deduction, meaning companies couldn't reduce their tax bills as much when they pay large bonuses to top executives.

Here's what that means in practical terms: when a CEO or other top executive receives a multimillion-dollar bonus, the company currently treats that payment like any other business expense and subtracts it from their taxable income. This bill would put a cap on how much of those executive bonuses companies can deduct. So if a company pays a CEO a $10 million bonus, they wouldn't be able to deduct the full amount from their taxes—they'd have to pay taxes on a larger portion of their profits.

The idea behind this bill is that taxpayers shouldn't effectively be subsidizing huge executive bonuses through the tax system. When companies pay less in taxes because of these deductions, that money isn't available for government programs, which means regular taxpayers pick up the slack. By limiting these deductions, the bill would increase tax revenue from companies that pay massive executive bonuses, while companies that pay more modest compensation to their executives would be less affected. The bill essentially says that if you're going to pay your executives extreme amounts of money, you shouldn't get as large a tax break for doing it.