[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1598 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1598

 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 18, 2009

    Ms. Moore of Wisconsin 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 AIG Key Executives Bonus 
Accountability and Capture (TAKE BACK) Act''.

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 (but not below zero) by 
                the TARP bonus of such individual, plus
                    ``(B) the amount equal to the TARP bonus.
            ``(2) TARP bonus.--For purposes of this subsection--
                    ``(A) In general.--The term `TARP bonus' means the 
                excess of--
                            ``(i) the aggregate payments in the nature 
                        of a bonus which are 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, over
                            ``(ii) $1.
                    ``(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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