This bill, known as the "CEO Accountability and Responsibility Act," seeks to amend the Internal Revenue Code of 1986 by adjusting the income tax rate for publicly traded corporations. The adjustment is based on the compensation ratio , which compares the compensation of the corporation's highest-paid employee to the median compensation of all its U.S. employees. Higher ratios would result in increased corporate tax rates, aiming to encourage more equitable pay structures. Specifically, if the compensation ratio exceeds 100-to-1, the highest corporate tax rate would increase incrementally, ranging from an additional 0.5 percentage points for ratios between 100 and 150, up to 3 percentage points for ratios over 400. A special rule further increases the tax rate adjustment by 50 percent if a corporation reduces its U.S. full-time workforce by more than 10 percent while simultaneously increasing its contracted or foreign full-time employees. The bill defines "compensation" for different employee types and outlines how the ratio is calculated. In addition to tax adjustments, the legislation establishes a federal contracting preference . Executive agencies would prioritize bids and proposals from entities that maintained a compensation ratio of less than 50-to-1 in the preceding year. This provision extends the bill's objectives to federal procurement, encouraging companies with more balanced pay scales to secure government contracts.