Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

Mr. President, I rise today to introduce legislation to posthumously award Fred Toyosaburo Korematsu with the Congressional Gold Medal. Fred challenged the illegal internment of Japanese Americans during World War II and devoted his life to expanding civil rights and liberties for all people. Awarding him the Congressional Gold Medal, Congress' highest civilian honor, would be a fitting tribute to his lifelong pursuit of justice and equality.

Fred was born in Oakland, California on January 30, 1919, to Japanese immigrant parents. Although he was an American citizen, Fred was discriminated against due to his Japanese ancestry. As the United States entered World War II, Fred tried unsuccessfully to enlist in the U.S. military, and was fired from his job at the Oakland shipyard. In 1942, Fred was arrested and convicted of defying military orders issued under Executive Order 9066, a discriminatory presidential order that authorized the mass removal and incarceration of more than 120,000 Japanese Americans during World War II.

Fred challenged the constitutionality of the government's order but was convicted in federal court of violating

military orders issued under Executive Order 9066. After a federal appeals court upheld his conviction, he appealed his case to the U.S. Supreme Court. On December 18, 1944, the Court ruled against him in a 6-3 decision, finding the government's discriminatory policy to incarcerate Japanese Americans was justified due to military necessity.

Decades later, legal historians discovered key information that the federal government did not share with the Supreme Court, including a report that concluded very few Japanese Americans represented a national security risk. After this evidence of government misconduct emerged and was presented to the court, Fred's conviction was overturned by a Federal court in San Francisco nearly forty years later, on November 10, 1983. Fred believed that the Supreme Court's decision was wrong, and stated, ``I would like to see the Government admit that they were wrong and do something about it so this will never happen again to any American citizen of any race, creed or color.'' Although the Supreme Court's infamous ruling in Korematsu v. United States has been widely rejected by historians and legal experts, it has never been formally repudiated, and stands as one of the Supreme Court's worst precedents.

The internment of Japanese Americans was a shameful act, and it was not until 1988 that the Civil Liberties Act was passed and our Government formally apologized to Americans of Japanese ancestry who were incarcerated during World War II. Fred Korematsu fought for this redress legislation and continued working to expand civil rights throughout his life. He spoke out against prejudice directed at minorities and immigrants, and after September 11, 2001, filed amicus briefs with the Supreme Court, warning our nation not to repeat history by committing civil and human rights travesties.

During his lifetime, Fred Korematsu did not choose the easy route. Instead, he chose to fight and speak out against injustice his entire life. He fought not just for himself, but for everyone, particularly minorities who could be discriminated against based on their ethnicity. However, many of these injustices remain, and can be reborn as we have seen with the rise in anti-Asian prejudice during the COVID-19 pandemic. Fred Korematsu reminds us that we must remain vigilant against discrimination, particularly when it is disguised in times of emergency or for reasons of security. On January 30, Fred Korematsu Day of Civil Liberties and the Constitution, we honor the life of this civil rights hero whose legacy continues to inspire people of all backgrounds to speak up and fight for justice. This day uses one of the most blatant examples of racial discrimination to educate individuals on the dangers of political scapegoating and works toward a future that guarantees civil rights for everyone. I am proud to introduce the Fred Korematsu Congressional Gold Medal Act in his memory, and I call on my colleagues in the United States Senate to swiftly pass this bill during the 117th Congress.

I yield the floor.

Mr. President, I am reintroducing the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act with Senators Blumenthal, Whitehouse, Merkley, Baldwin, Warren, Van Hellene, and Brown. This legislation fully closes a loophole that has allowed publicly traded corporations to deduct the cost of multimillion-dollar bonuses from their corporate tax bills. U.S. taxpayers shouldn't continue to have to subsidize these massive bonuses.

Under section 162(m) of the tax code as amended by the 2017 Trump tax law (TCJA), when a publicly traded corporation calculates its taxable income, it is generally permitted to deduct compensation costs from its revenues, with limits up to $1 million for some of the firm's most senior executives.

In the 115th Congress, the TCJA got rid of some of the prior 162(m) loopholes by taking provisions from my Stop Subsidizing Multimillion Dollar Corporate Bonuses Act, including removing the exemption for performance-based compensation, which previously permitted compensation deductions above $1 million when executives met performance benchmarks,

While these steps were a start, even more should have been done, such as applying section 162(m) to all employees of publicly traded corporations so that all compensation is subject to a deductibility cap of $1 million. This was the only provision from my Stop Subsidizing Multimillion Dollar Corporate Bonuses Act from the l15th Congress that was not incorporated into the Trump tax law.

Partially closing these 162(m) loopholes saved taxpayers $9.2 billion according to the Joint Committee on Taxation (JCT), but last Congress, the JCT estimated that fully closing the loophole along the lines of the legislation I am reintroducing today would save taxpayers an additional $27 billion dollars.

Under this legislation, publicly traded corporations would still be permitted to pay their executives as much as they desire, but compensation above and beyond $1 million would no longer be subsidized through our tax code. This is simply a matter of fairness, ensuring that corporations--and not hardworking taxpayers who face their own challenges in this economy--are paying for the multi-million dollar bonuses corporations have decided to dole out to their senior executives. Instead of showering corporations with additional benefits they certainly don't need, we should be doing everything within our power to help more families, who are barely surviving, make it to the other side of this public health emergency.

I thank Public Citizen, the Institute for Policy Studies--Global Economy Project, Americans for Financial Reform, the AFL-CIO, International Brotherhood of Teamsters, and MIT Professor Simon Johnson for their support. I urge our colleagues to join us in cosponsoring this legislation and pressing for its passage.

Mr. President, I am reintroducing the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act with Senators Blumenthal, Whitehouse, Merkley, Baldwin, Warren, Van Hellene, and Brown. This legislation fully closes a loophole that has allowed publicly traded corporations to deduct the cost of multimillion-dollar bonuses from their corporate tax bills. U.S. taxpayers shouldn't continue to have to subsidize these massive bonuses.

Under section 162(m) of the tax code as amended by the 2017 Trump tax law (TCJA), when a publicly traded corporation calculates its taxable income, it is generally permitted to deduct compensation costs from its revenues, with limits up to $1 million for some of the firm's most senior executives.

In the 115th Congress, the TCJA got rid of some of the prior 162(m) loopholes by taking provisions from my Stop Subsidizing Multimillion Dollar Corporate Bonuses Act, including removing the exemption for performance-based compensation, which previously permitted compensation deductions above $1 million when executives met performance benchmarks,

While these steps were a start, even more should have been done, such as applying section 162(m) to all employees of publicly traded corporations so that all compensation is subject to a deductibility cap of $1 million. This was the only provision from my Stop Subsidizing Multimillion Dollar Corporate Bonuses Act from the l15th Congress that was not incorporated into the Trump tax law.

Partially closing these 162(m) loopholes saved taxpayers $9.2 billion according to the Joint Committee on Taxation (JCT), but last Congress, the JCT estimated that fully closing the loophole along the lines of the legislation I am reintroducing today would save taxpayers an additional $27 billion dollars.

Under this legislation, publicly traded corporations would still be permitted to pay their executives as much as they desire, but compensation above and beyond $1 million would no longer be subsidized through our tax code. This is simply a matter of fairness, ensuring that corporations--and not hardworking taxpayers who face their own challenges in this economy--are paying for the multi-million dollar bonuses corporations have decided to dole out to their senior executives. Instead of showering corporations with additional benefits they certainly don't need, we should be doing everything within our power to help more families, who are barely surviving, make it to the other side of this public health emergency.

I thank Public Citizen, the Institute for Policy Studies--Global Economy Project, Americans for Financial Reform, the AFL-CIO, International Brotherhood of Teamsters, and MIT Professor Simon Johnson for their support. I urge our colleagues to join us in cosponsoring this legislation and pressing for its passage.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.