[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1007 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1007

  To amend the Internal Revenue Code of 1986 to deny a deduction for 
         excessive compensation of any employee of an employer.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 7, 2009

  Mr. Durbin introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to deny a deduction for 
         excessive compensation of any employee of an employer.

    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 ``Excessive Pay Capped Deduction Act 
of 2009''.

SEC. 2. DENIAL OF DEDUCTION FOR PAYMENTS OF EXCESSIVE COMPENSATION.

    (a) In General.--Section 162 of the Internal Revenue Code of 1986 
is amended by inserting after subsection (h) the following new 
subsection:
    ``(i) Excessive Compensation.--
            ``(1) In general.--No deduction shall be allowed under this 
        chapter for any excessive compensation for any employee of the 
        taxpayer.
            ``(2) Excessive compensation.--For purposes of this 
        subsection, the term `excessive compensation' means, with 
        respect to any employee, the amount by which the compensation 
        for services performed by such employee during the taxable year 
        exceeds the amount which is equal to 100 times the amount of 
        the average compensation for services performed by all 
        employees of the taxpayer during the taxable year.
            ``(3) Other definitions and special rules.--
                    ``(A) Compensation.--
                            ``(i) In general.--For purposes of this 
                        subsection, the term `compensation' includes 
                        wages, salary, fees, commissions, fringe 
                        benefits, deferred compensation, retirement 
                        contributions, options, bonuses, property, and 
                        any other form of remuneration that the 
                        Secretary determines is appropriate.
                            ``(ii) Part-time and part-year employees.--
                        In the case of any employee which is a part-
                        time employee of the taxpayer or which is not 
                        employed by the taxpayer for a full taxable 
                        year, the compensation of such employee shall 
                        be calculated for purposes of this subparagraph 
                        on an annualized basis.
                    ``(B) Employer.--All persons treated as a single 
                employer under subsection (a) or (b) of section 52 or 
                subsection (m) or (o) of section 414 shall be treated 
                as a single taxpayer for purposes of this subsection.
            ``(4) Reporting.--Each employer that provides any excessive 
        compensation to any employee during a taxable year shall file a 
        report with the Secretary with respect to such taxable year 
        including--
                    ``(A) the amount of compensation of the employee of 
                the taxpayer receiving the lowest amount of 
                compensation during such taxable year,
                    ``(B) the amount of compensation of the employee of 
                the taxpayer receiving the highest amount of 
                compensation during such taxable year,
                    ``(C) the average compensation of all employees of 
                the taxpayer during such taxable year,
                    ``(D) the number of employees of the taxpayer who 
                are receiving compensation that is more than 100 times 
                the average compensation of all employees of the 
                taxpayer during such taxable year, and
                    ``(E) the amounts of compensation of the employees 
                described in subparagraph (D) during such taxable year.
        Such report shall be filed at such time and in such manner as 
        the Secretary may require.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
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