[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3675 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3675

To amend the Internal Revenue Code of 1986 to provide for the treatment 
  of certain excessive employee remuneration, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

            October 1 (legislative day, September 17), 2008

   Mr. Kerry introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide for the treatment 
  of certain excessive employee remuneration, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Compensation Fairness Act of 2008''.

SEC. 2. TREATMENT OF CERTAIN EXCESSIVE EMPLOYEE REMUNERATION.

    (a) Inflation Index of Limitation.--Section 162(m) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(5) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2008, the $1,000,000 dollar amount 
                under paragraph (1) shall be increased by an amount 
                equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost of living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2007' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $1,000, such 
                amount shall be rounded to the next lowest multiple of 
                $1,000.''.
    (b) Repeal of Exception for Remuneration Payable on Commission 
Basis.--Section 162(m)(4) of the Internal Revenue Code of 1986 is 
amended by striking subparagraph (B) and by redesignating subparagraphs 
(C) through (G) as subparagraphs (B) through (F), respectively.
    (c) Repeal of Exception for Other Performance-Based Compensation.--
Section 162(m)(4) of the Internal Revenue Code of 1986, as amended by 
subsection (b), is amended by striking subparagraph (B) and by 
redesignating subparagraphs (C) through (F) as subparagraphs (B) 
through (E), respectively.
    (d) Timing for Determination of Certain Covered Employees.--Section 
162(m)(3)(A) of the Internal Revenue Code of 1986 is amended by 
striking ``as of the close of the taxable year'' and inserting ``at any 
time during the taxable year''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
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