In late February, Rep. David Camp (R-MI), Chair of the House Ways and Means Committee introduced the first comprehensive tax reform proposal which places a $1 million cap on the compensation for the named executive officers, eliminating performance-based compensation under section 162(m) of the Internal Revenue Code and eliminates the ability of companies to offer nonqualified deferred compensation under section 409A. The proposal, which provides for a reduction in the marginal tax corporate tax rate at a time when the U.S. corporate tax rate is among the highest in the world, demonstrates that Republicans as well as Democrats will target deductions for executive compensation, even though compensation is typically considered a "reasonable and necessary" business expense and therefore deductible. The Camp proposal comes months after Democrats offered bills in both the House and Senate limiting deductible compensation to $1 million for all employees. Camp's proposal for the GOP does not go nearly as far with regard to 162(m) and will still allow deductions in excess of $1 million for non-NEOs. However, the GOP bill goes much further by eliminating IRS Code Section 409A thereby removing the ability of companies to provide nonqualified deferred compensation. This will have a notable impact on company compensation practices, particularly with regard to retirement plans for their senior executives. Camp's proposal estimates that the repeal of both sections would raise $21.3 billion in revenue over 10 years. Our analysis of the tax reform and the GOP's proposal is available in the attached policy brief.