1. Short title This Act may be cited as the Curtailing Executive Overcompensation (CEO) Act . 2. Excise tax on excessive chief executive officer pay disparity (a) In general Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: 50B Pay disparity Sec. 5000E. Excessive pay disparity. 5000E. Excessive pay disparity (a) In general In the case of any employer which is an applicable employer for the calendar year, there is hereby imposed a tax equal to the lesser of— (1) 1 percent of the product of— (A) the pay disparity factor of the applicable employer for the calendar year, and (B) the excess of— (i) amount determined under subsection (c)(2)(A) for such calendar year, over (ii) 5,000 percent of the amount determined under subsection (c)(2)(B) for such calendar year, or (2) 1 percent of the gross receipts (within the meaning of section 448(c)) of such applicable employer. (b) Applicable employer (1) In general For purposes of this section, the term applicable employer means, with respect to any calendar year, any employer which— (A) has not less than $100,000,000 in gross receipts (within the meaning of section 448(c)) for each of the 3 calendar years preceding such calendar year, and (B) has paid wages in excess of $10,000,000 for each calendar year in the 3-calendar-year period taken into account under subparagraph (A). (2) Aggregation rule For purposes of this section, the rules of subsection (a) and (b) of section 52 shall apply. (3) Predecessors For purposes of paragraph (1)(A), rules similar to the rules of section 448(c)(3)(D) shall apply. (4) Inflation adjustment (A) In general In the case of any calendar year after 2024, the $100,000,000 amount under paragraph (1)(A) and the $10,000,000 amount under paragraph (1)(B) shall each be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting calendar year 2023 for calendar year