[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1542 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1542

To amend the Internal Revenue Code of 1986 to impose a 100 percent tax 
  on bonuses paid by businesses that receive TARP assistance and are 
               majority owned by the Federal Government.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2009

  Mrs. Maloney (for herself, Mr. Pomeroy, Mr. Engel, Ms. Hirono, Mr. 
   Higgins, and Mr. Space) 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 100 percent tax 
  on bonuses paid by businesses that receive TARP assistance and are 
               majority owned by the Federal Government.

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

SECTION 1. 100 PERCENT TAX ON BONUSES PAID BY BUSINESSES THAT RECEIVE 
              TARP ASSISTANCE AND ARE MAJORITY OWNED BY THE FEDERAL 
              GOVERNMENT.

    (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) 100 Percent Tax on Bonuses Paid by Businesses That Receive 
TARP Assistance and Are Majority Owned by the Federal Government.--
            ``(1) In general.--In the case of any individual who 
        receives a bonus during the taxable year from a covered TARP 
        person, 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 such bonus, plus
                    ``(B) the amount equal to such bonus.
            ``(2) Bonus.--For purposes of this subsection--
                    ``(A) In general.--The term `bonus' means any 
                payment in the nature of a bonus which is paid by a 
                person if--
                            ``(i) such person (or any predecessor of 
                        such person) received assistance under title I 
                        of division A of the Emergency Economic 
                        Stabilization Act of 2008 during the taxable 
                        year or any prior taxable year, and
                            ``(ii) at the time such bonus is paid the 
                        ownership interest of the Federal Government in 
                        such person is--
                                    ``(I) in the case of a corporation, 
                                greater than 50 percent of the stock of 
                                such person (by vote or value),
                                    ``(II) in the case of a 
                                partnership, greater than 50 percent or 
                                more of the profits interests or 
                                capital interests in such person, and
                                    ``(III) in any other case, greater 
                                than 50 percent or more of the 
                                beneficial interests in such person.
                    ``(B) Exception.--The term `bonus' does not include 
                compensation in the nature of a commission or salary.
                    ``(C) 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.
            ``(3) Regulations.--The Secretary shall issue such 
        regulations or other guidance as may be necessary to carry out 
        this subsection.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2008.
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