[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1586 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1586
To impose an additional tax on bonuses received from certain TARP
recipients.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 18, 2009
Mr. Rangel (for himself, Mr. Israel, Mr. Peters, Mrs. Maloney, Mr.
Stark, Mr. Levin, Mr. Lewis of Georgia, Mr. Tanner, Mr. Pomeroy, Mr.
Thompson of California, Mr. Larson of Connecticut, Mr. Blumenauer, Mr.
Pascrell, Ms. Berkley, Mr. Van Hollen, Mr. Meek of Florida, Mr. Davis
of Alabama, Mr. Davis of Illinois, Mr. Etheridge, Ms. Linda T. Sanchez
of California, Mr. Higgins, Mr. Yarmuth, Mr. Dingell, Mr. Connolly of
Virginia, Ms. Fudge, Mr. Lujan, Mr. Maffei, Mr. Perriello, Mr. Carney,
Ms. Castor of Florida, Ms. Clarke, Mr. Cohen, Mr. Ellison, Mr. Hall of
New York, Mr. Hare, Mr. Klein of Florida, Mr. Loebsack, Ms. Schakowsky,
Mr. Sires, Mr. Welch, Mr. Wilson of Ohio, Mr. Wu, and Mr. Hill)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To impose an additional tax on bonuses received from certain TARP
recipients.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. BONUSES RECEIVED FROM CERTAIN TARP RECIPIENTS.
(a) In General.--In the case of an employee or former employee of a
covered TARP recipient, the tax imposed by chapter 1 of the Internal
Revenue Code of 1986 for any taxable year shall not be less than the
sum of--
(1) the tax that would be determined under such chapter if
the taxable income of the taxpayer for such taxable year were
reduced (but not below zero) by the TARP bonus received by the
taxpayer during such taxable year, plus
(2) 90 percent of the TARP bonus received by the taxpayer
during such taxable year.
(b) TARP Bonus.--For purposes of this section--
(1) In general.--The term ``TARP bonus'' means, with
respect to any individual for any taxable year, the lesser of--
(A) the aggregate disqualified bonus payments
received from covered TARP recipients during such
taxable year, or
(B) the excess of--
(i) the adjusted gross income of the
taxpayer for such taxable year, over
(ii) $250,000 ($125,000 in the case of a
married individual filing a separate return).
(2) Disqualified bonus payment.--
(A) In general.--The term ``disqualified bonus
payment'' means any retention payment, incentive
payment, or other bonus which is in addition to any
amount payable to such individual for service performed
by such individual at a regular hourly, daily, weekly,
monthly, or similar periodic rate.
(B) Exceptions.--Such term shall not include
commissions, welfare or fringe benefits, or expense
reimbursements.
(C) Waiver or return of payments.--Such term shall
not include any amount if the employee irrevocably
waives the employee's entitlement to such payment, or
the employee returns such payment to the employer,
before the close of the taxable year in which such
payment is due. The preceding sentence shall not apply
if the employee receives any benefit from the employer
in connection with the waiver or return of such
payment.
(3) Reimbursement of tax treated as tarp bonus.--Any
reimbursement by a covered TARP recipient of the tax imposed
under subsection (a) shall be treated as a disqualified bonus
payment to the taxpayer liable for such tax.
(c) Covered TARP Recipient.--For purposes of this section--
(1) In general.--The term ``covered TARP recipient''
means--
(A) any person who receives after December 31,
2007, capital infusions under the Emergency Economic
Stabilization Act of 2008 which, in the aggregate,
exceed $5,000,000,000,
(B) the Federal National Mortgage Association and
the Federal Home Loan Mortgage Corporation,
(C) any person who is a member of the same
affiliated group (as defined in section 1504 of the
Internal Revenue Code of 1986, determined without
regard to paragraphs (2) and (3) of subsection (b)) as
a person described in subparagraph (A) or (B), and
(D) any partnership if more than 50 percent of the
capital or profits interests of such partnership are
owned directly or indirectly by one or more persons
described in subparagraph (A), (B), or (C).
(2) Exception for tarp recipients who repay assistance.--A
person shall be treated as described in paragraph (1)(A) for
any period only if--
(A) the excess of the aggregate amount of capital
infusions described in paragraph (1)(A) with respect to
such person over the amounts repaid by such person to
the Federal Government with respect to such capital
infusions, exceeds
(B) $5,000,000,000.
(d) Other Definitions.--Terms used in this section which are also
used in the Internal Revenue Code of 1986 shall have the same meaning
when used in this section as when used in such Code.
(e) Coordination With Internal Revenue Code of 1986.--Any increase
in the tax imposed under chapter 1 of the Internal Revenue Code of 1986
by reason of subsection (a) shall not be treated as a tax imposed by
such chapter for purposes of determining the amount of any credit under
such chapter or for purposes of section 55 of such Code.
(f) Regulations.--The Secretary of the Treasury, or the Secretary's
delegate, shall prescribe such regulations or other guidance as may be
necessary or appropriate to carry out the purposes of this section.
(g) Effective Date.--This section shall apply to disqualified bonus
payments received after December 31, 2008, in taxable years ending
after such date.
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