TN SB0405The bill, known as the 'CEO Pay Disparity Tax Act,' proposes an additional tax on companies whose top executives earn at least 100 times more than their average employee. This extra tax would be 0.1 percent on top of the existing 6.5 percent excise tax. The aim is to address income inequality within corporations.
TN SB0405 is a senate bill in the Tennessee 114th General Assembly, sponsored by London Lamar (D), currently “Introduced” since January 28, 2025.
We track 9,160 Tennessee bills this session, 117 of them sponsored by London Lamar.
Supporters of the bill argue that it promotes fairness and accountability in corporate pay structures. By taxing companies with significant pay disparities, it encourages businesses to consider the wages of their employees and work towards reducing income inequality.
Critics of the bill contend that imposing an additional tax on companies could discourage investment and job creation. They argue that it unfairly targets successful businesses and may lead to unintended economic consequences, such as companies relocating to states with more favorable tax structures.
The proposed 'CEO Pay Disparity Tax Act' aims to impose a surcharge on companies with significant pay disparities between their top executives and median employee salaries. The sponsor, London Lamar, is primarily engaged as a community organizer and is employed by the Tennessee State Legislature. Her roles do not indicate any direct financial interests in the corporate sector that would be affected by this legislation. Additionally, her position as a board member of the Memphis Branch of the NAACP does not create a financial conflict regarding the taxation of corporations. Since her personal financial interests do not intersect with the industries impacted by the bill, the risk of conflict is minimal.
Unlike federal analysis based on campaign donations, state analysis examines legislators' personal financial interests — their jobs, businesses, and investments.
| Type | Description | Industry | Source |
|---|---|---|---|
| Occupation | Community Organizer | — | AI-researched |
| Employer | Tennessee State Legislature | — | TN Legislature bio |
| Board Member | Board Member of the Memphis Branch of the NAACP | — | AI-researched |
| Employer | ELITE PROMOTIONS | — | TN Ethics Commission |
Items marked "AI-researched" are generated from public sources but have not been independently verified. Verified data is sourced from official legislature websites and disclosure filings.
About This Analysis
This summary was generated using AI from the bill's official text and metadata. Data sourced from LegiScan and the Tennessee General Assembly. Conflict analysis examines the sponsor's personal financial interests for potential overlaps with the bill's subject matter.
What does TN SB0405 do?
The bill, known as the 'CEO Pay Disparity Tax Act,' proposes an additional tax on companies whose top executives earn at least 100 times more than their average employee. This extra tax would be 0.1 percent on top of the existing 6.5 percent excise tax. The aim is to address income inequality within corporations.
What is the status of TN SB0405?
TN SB0405 is currently “Introduced” in the Tennessee legislature.
Who sponsored TN SB0405?
London Lamar (D) sponsored TN SB0405.
