1. Short title This Act may be cited as the CEO Accountability and Responsibility Act . 2. Income tax rate of publicly traded corporations based on compensation ratio (a) In general Section 11 of the Internal Revenue Code of 1986 is amended by adding at the end the following: (e) Tax rate of publicly traded corporations 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 purposes of paragraph (1), the percentage points specified in this paragraph shall be determined as follows: If the compensation ratio is: The percentage point adjustment is: Not more than 25 −1 percentage points More than 25 but not more than 50 −0.5 percentage points More than 50 but not more than 100 zero 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 subsection— (A) Compensation ratio The compensation ratio for a taxable year means a ratio— (i) the numerator of which is the amount equal to the greater of the compensation of the chief operating officer or the highest paid employee of the taxpayer for the calendar year preceding the beginning 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