[Congressional Record Volume 155, Number 70 (Thursday, May 7, 2009)]
[Senate]
[Pages S5291-S5292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 1007. A bill to amend the Internal Revenue Code of 1986 to deny a 
deduction for excessive compensation of any employee of an employer; to 
the Committee on Banking, Housing, and Urban Affairs.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1007

       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.

[[Page S5292]]

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