Equity in Compensation Act

“12. Surtax on corporations with significant disparity in employee wages

“(a) In general—In the case of an applicable corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the applicable percentage of taxable income.

“(b) Applicable corporation—For purposes of this section, the term applicable corporation means any corporation which—

“(1) has gross revenue for the taxable year in excess of $1,000,000,000, and

“(2) has a wage disparity level in excess of 3,000 percent.

“(c) Applicable percentage—For purpose of this section, the applicable percentage shall be determined as follows:

“(d) Wage disparity level—For purposes of this section—

“(1) In general—The term wage disparity level means the ratio (expressed as a percentage) of the annual salary of highest compensated officer of the corporation to the median annual salary of all employees of the corporation.

“(2) Determination of annual salary—The annual salary of any officer or employee shall be determined by taking into account the wages (within the meaning of section 3121(a), but determined without regard to any dollar limitation contained in such section) paid to such officer or employee for services performed during the taxable year. In the case of any officer or employee who is not employed for the entire taxable year, the wages paid for such taxable year shall be increased by an amount equal to the product of the average daily wages paid to such employees for the number of days during the taxable year during which such employee was employed and the number of days during the taxable year during which such employee was not so employed.

“(e) Exceptions; treatment of foreign corporations—Rules similar to the rules of subsections (c) and (d) of section 11 shall apply for purposes of this section.”