[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4642 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 4642

 To amend the Internal Revenue Code of 1986 to impose an income tax on 
                excess profits of certain corporations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 9, 2024

Mr. Sanders (for himself and Mr. Markey) 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 impose an income tax on 
                excess profits of certain corporations.

    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 ``Ending Corporate Greed Act''.

SEC. 2. TAX ON EXCESS BUSINESS PROFITS OF CERTAIN CORPORATIONS.

    (a) In General.--Subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

                  ``PART VIII--EXCESS BUSINESS PROFITS

``Sec. 59B. Tax on excess business profits of taxpayers with 
                            substantial gross receipts.

``SEC. 59B. TAX ON EXCESS BUSINESS PROFITS OF TAXPAYERS WITH 
              SUBSTANTIAL GROSS RECEIPTS.

    ``(a) Imposition of Tax.--There is hereby imposed on each 
applicable taxpayer for any taxable year a tax equal to 95 percent of 
the excess profits for the taxable year. Such tax shall be in addition 
to any other tax imposed by this subtitle.
    ``(b) Limitation.--The amount of tax imposed under subsection (a) 
for any taxable year shall not exceed 75 percent of the modified 
taxable income of the taxpayer for such taxable year.
    ``(c) Excess Profits.--For purposes of this section--
            ``(1) In general.--The term `excess profits' means, with 
        respect to any applicable taxpayer for any taxable year, the 
        excess of--
                    ``(A) the modified taxable income of the taxpayer 
                for the taxable year, over
                    ``(B) the average of the inflation adjusted 
                modified taxable income of the taxpayer for taxable 
                years beginning in 2015, 2016, 2017, 2018, and 2019.
            ``(2) Inflation adjusted modified taxable income.--
                    ``(A) In general.--The term `inflation adjusted 
                modified taxable income' means, with respect to any 
                taxable year described in paragraph (1)(B), the 
                modified adjusted gross income for such taxable year 
                increased by an amount equal to--
                            ``(i) such modified adjusted gross income, 
                        multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year 
                        described in paragraph (1)(A) begins, 
                        calculated by using in section 1(f)(3)(A)(ii) 
                        the CPI for the calendar year immediately 
                        before the calendar year in which the taxable 
                        year for which the increase under this 
                        paragraph is determined in lieu of the CPI for 
                        calendar year 2016.
                    ``(B) Rounding.--Any increase determined under 
                subparagraph (A) shall be rounded to the nearest 
                multiple of $500.
    ``(d) Modified Taxable Income.--For purposes of this section, the 
term `modified taxable income' means, with respect to any taxable year, 
the taxable income of the taxpayer computed under this chapter for such 
taxable year, determined with the following modifications:
            ``(1) Global intangible low-taxed income.--In determining 
        the amount of global intangible low-taxed income included in 
        income for the taxable year, the taxpayer's net deemed tangible 
        income return for the taxable year under section 951A(b)(1)(B) 
        shall be zero.
            ``(2) Deductions for fdii and gilti.--No deduction shall be 
        allowed under section 250.
            ``(3) Depreciation system.--In the case of tangible 
        property, the depreciation deduction allowable under section 
        167 shall be determined under the alternative depreciation 
        system of section 168(g).
            ``(4) Research and experimental expenses.--Section 174 
        shall be applied to amounts paid or incurred in any taxable 
        year beginning on or before December 31, 2021, in the same 
        manner as it is applied to amounts paid or incurred in taxable 
        years beginning after such date.
            ``(5) Deductions for employee remuneration.--
                    ``(A) In general.--Section 162(m) shall be 
                applied--
                            ``(i) by substituting `covered individual 
                        (as defined in section 59B(d)(5)(B))' for 
                        `covered employee' each place it appears in 
                        paragraphs (1) and (4) thereof,
                            ``(ii) by treating any reference to an 
                        `employee' in paragraphs (1) and (4) thereof as 
                        a reference to an `individual', and
                            ``(iii) by substituting `was required to 
                        file reports under section 15(d) of such Act 
                        (15 U.S.C. 78o(d)) at any time during the 3-
                        taxable year period ending with the taxable 
                        year' for `is required to file reports under 
                        section 15(d) of such Act (15 U.S.C. 78o(d))' 
                        in paragraph (2) thereof.
                    ``(B) Covered individual.--For purposes of applying 
                this paragraph to section 162(m), the term `covered 
                individual' means any individual who performs services 
                (directly or indirectly) for the taxpayer (or any 
                predecessor) for any taxable year beginning after 
                December 31, 2023.
    ``(e) Applicable Taxpayer.--For purposes of this section--
            ``(1) In general.--The term `applicable taxpayer' means, 
        with respect to any taxable year, a taxpayer--
                    ``(A) which is a corporation other than a regulated 
                investment company, a real estate investment trust, or 
                an S corporation, and
                    ``(B) the average annual gross receipts of which 
                for the 3-taxable-year period ending with the preceding 
                taxable year are at least $500,000,000.
            ``(2) Gross receipts.--
                    ``(A) Special rule for foreign persons.--In the 
                case of a foreign person the gross receipts of which 
                are taken into account for purposes of paragraph 
                (1)(B), only gross receipts which are taken into 
                account in determining income which is effectively 
                connected with the conduct of a trade or business 
                within the United States shall be taken into account. 
                In the case of a taxpayer which is a foreign person, 
                the preceding sentence shall not apply to the gross 
                receipts of any United States person which are 
                aggregated with the taxpayer's gross receipts by reason 
                of paragraph (3).
                    ``(B) Other rules made applicable.--Rules similar 
                to the rules of section 448(c)(3) shall apply in 
                determining gross receipts for purposes of this 
                section.
            ``(3) Aggregation rules.--All persons treated as a single 
        employer under subsection (a) of section 52 shall be treated as 
        1 person for purposes of this subsection, except that in 
        applying section 1563 for purposes of section 52, the exception 
        for foreign corporations under section 1563(b)(2)(C) shall be 
        disregarded.
    ``(f) Termination.--This section shall not apply to any taxable 
year beginning after December 31, 2026.''.
    (b) Conforming Amendment.--The table of subchapters for subchapter 
A of chapter 1 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new item:

                ``PART VIII--Excess Business Profits''.

    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2023.
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