The summary oversimplifies and overlooks some key issues - this is a decent idea that could use better mechanics. There ALREADY EXISTS a provision that denies the deduction for "excessive compensation" - Internal Revenue Code Section 162(m). The current provision is flawed to worse than pointless because of the large "performance based" compensation exception of 162(m)(4)(C). This bill is (somewhat) trying to address that loophole. However, by tying the deduction to additional metrics (inflation, average wage of employees) it makes the whole concept unfair and administratively burdensome while attempting the laudable goal of fairness. Companies, even publicly traded ones, shouldn't have to keep track of such esoteric information. Further, the bill ignores the issue of seniority, as the "average wage" of a company will be skewed by new hires each year, which we want to encourage. In the end, I think we would be better served by simplifying the tax code, eliminating the performance based compensation loophole of 162(m)(4)(C) and letting market forces work to correct wage disparity in that simpler framework.