[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1518 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1518

 To amend the Internal Revenue Code of 1986 to impose a higher rate of 
        tax on bonuses paid by businesses receiving TARP funds.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2009

    Mr. Israel (for himself, Mr. Braley of Iowa, Mr. Chandler, Mrs. 
  McCarthy of New York, and Mr. Massa) introduced the following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to impose a higher rate of 
        tax on bonuses paid by businesses receiving TARP funds.

    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 ``Bailout Bonus Tax Bracket Tax Act of 
2009''.

SEC. 2. HIGHER RATE OF TAX ON BONUSES PAID BY BUSINESSES RECEIVING TARP 
              FUNDS.

    (a) In General.--Section 1 of the Internal Revenue Code of 1986 
(relating to tax imposed on individuals) is amended by adding at the 
end the following new subsection:
    ``(j) Rate of Tax on Bonuses Paid by Businesses Receiving TARP 
Funds.--
            ``(1) In general.--In the case of any individual who 
        receives a TARP bonus during the taxable year, the tax imposed 
        by this section shall be equal to--
                    ``(A) the tax which would be imposed by this 
                section if the taxable income of such individual for 
                the taxable year were reduced by the TARP bonus of such 
                individual, plus
                    ``(B) the amount equal to the applicable percentage 
                of the TARP bonus.
            ``(2) Applicable percentage.--For purposes of the 
        subsection, the applicable percentage shall be determined under 
        the following table:

``If the aggregate TARP bonuses     The applicable percentage is:
        received during the taxable 
        year is:
    Over $100,000..................
                                        100 percent.
            ``(3) TARP bonus.--For purposes of this subsection--
                    ``(A) In general.--The term `TARP bonus' means any 
                payment in the nature of a bonus which is paid by any 
                person if--
                            ``(i) such person (or any predecessor of 
                        such person) received assistance under title I 
                        of division A the Emergency Economic 
                        Stabilization Act of 2008 during the taxable 
                        year or any prior taxable year, or
                            ``(ii) such person acquired a major portion 
                        of a trade or business, or the major portion of 
                        a separate unit of a trade or business, from 
                        any person which received such assistance with 
                        respect to such portion or unit.
                    ``(B) Controlled groups.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), all persons treated as a 
                        single employer under subsection (a) or (b) of 
                        section 52 or under subsection (m) or (o) of 
                        section 414 shall be treated as one person.
                            ``(ii) Inclusion of foreign corporations.--
                        For purposes of clause (i), in applying 
                        subsections (a) and (b) of section 52 to this 
                        section, section 1563 shall be applied without 
                        regard to subsection (b)(2)(C) thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.
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