HR0553 98TH GENERAL ASSEMBLY

HR0553 LRB098 13069 GRL 47582 r

HOUSE RESOLUTION

WHEREAS, Despite the current instability of the economy, times in which income inequality rises and middle-class wages stagnate, American taxpayers are subsidizing tens of billions of dollars in corporate bonuses; and

WHEREAS, In 1993, Congress capped the deductibility of certain executive pay to $1 million; however, the law allowed an exception for performance-based pay, including stock options, non-equity incentive plans, and stock appreciation rights, as part of Section 162(m) of the Internal Revenue Code; as a result of the law, more executive compensation packages have been structured to meet the performance-based exception as a way to avoid paying taxes on corporate earnings; and

WHEREAS, On August 1, 2013, United States Senators Jack Reed (D-RI) and Richard Blumenthal (D-CT) introduced a bill that would address these inequities; and

WHEREAS, The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act would limit the tax deductibility of executive pay to $1 million and eliminate the exception for commission-based and performance-based compensation; the Act would also expands the restrictions to all current and former employees of all corporations that file periodic reports with the United States Securities and Exchange Commission; and

WHEREAS, The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act would generate $50 billion in tax revenue over a 10-year period; this revenue could be used for any number of public programs that would promote the general interest; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE NINETY-EIGHTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that we urge Congress to pass S. 1476, the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act; and be it further

RESOLVED, That suitable copies of this resolution be delivered to the Speaker and Minority Leader of the United States House of Representatives, the Majority and Minority Leaders of the United States Senate, and the members of the Illinois congressional delegation.