(WASHINGTON) – The Teamsters Union fully supports the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act as an important step toward ensuring corporations pay their fair share in taxes and curbing the trend of excessive executive pay.

Introduced today by Rep. Lloyd Doggett (D-TX) and Sen. Jack Reed (D-RI), the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act closes a loophole in the tax law that allows corporations to claim commission and performance-based executive compensation as a deduction. The current tax law restricts publicly traded corporations from deducting any employee’s base compensation over $1 million. However, the restriction does not include executive compensation received as a bonus.

“This loophole gives corporations incentive to give top executives massive bonuses that they can then turn around and deduct from their corporate revenue for tax purposes,” said Teamsters General Secretary-Treasurer Ken Hall. “This loophole has played a large part in the current trend of ever-increasing excessive executive bonuses.”