[Congressional Record Volume 164, Number 40 (Wednesday, March 7, 2018)]
[Senate]
[Page S1524]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 2154. Mr. BOOKER (for himself and Mr. Casey) submitted an 
amendment intended to be proposed by him to the bill S. 2155, to 
promote economic growth, provide tailored regulatory relief, and 
enhance consumer protections, and for other purposes; which was ordered 
to lie on the table; as follows:

       At the end, insert the following:

                 TITLE VI--WORKER DIVIDEND ACT OF 2018

     SEC. 601. SHORT TITLE.

       This title may be cited as the ``Worker Dividend Act of 
     2018''.

     SEC. 602. FAILURE OF EMPLOYER TO PAY WORKER DIVIDENDS.

       (a) In General.--Subtitle D of the Internal Revenue Code of 
     1986 is amended by inserting after chapter 36 the following 
     new chapter:

         ``CHAPTER 37--PROVISIONS RELATING TO WORKER DIVIDENDS

``Sec. 4501. Failure of employer to pay worker dividends.

     ``SEC. 4501. FAILURE OF EMPLOYER TO PAY WORKER DIVIDENDS.

       ``(a) General Rule.--If, for a taxable year in which a 
     covered employer repurchases any securities of the employer 
     on the open market, the covered employer fails to pay to its 
     employees a worker dividend meeting the requirements of 
     subsection (b), then there is hereby imposed on the covered 
     employer a tax equal to the lesser of the amounts determined 
     under subparagraphs (A) and (B) of subsection (b)(1).
       ``(b) Worker Dividend.--For purposes of this section--
       ``(1) In general.--The term `worker dividend' means a 
     payment made by a covered employer to employees of the 
     employer at locations in the United States, if the total of 
     all such payments made during the taxable year is not less 
     than the lesser of--
       ``(A) the amount paid by the employer to repurchase 
     securities of the employer on the open market during the 
     taxable year, and
       ``(B) 50 percent of the amount by which the earnings before 
     interest, taxes, depreciation, and amortization of the 
     employer during the taxable year in the United States exceed 
     $250,000,000.
       ``(2) Payments to be in addition to compensation.--Such 
     term shall not include any payment unless such payment is in 
     addition to, and (including by election of the employee) is 
     not included in (except as provided in paragraph (5)) or 
     substituted for, any cash or other compensation ordinarily 
     paid to the employee by the employer.
       ``(3) Payments to be equal.--Such term shall not include 
     any payment unless the amount of the payment made to each 
     employee of the employer in the United States is of an equal 
     amount. Notwithstanding the preceding sentence, in the case 
     of an employee employed at less than full time, the payment 
     to such employee may be in a pro rata amount based on the 
     hours worked by the employee per week.
       ``(4) Timing of payment.--Such term shall not include any 
     payment which is not made within 60 days of the close of the 
     taxable year to which it relates.
       ``(5) Option to increase compensation.--A covered employer 
     may, by providing such documentation as the Secretary may 
     require, elect to have the worker dividend paid to employees 
     in the form of an increase in regular compensation. In the 
     case of a covered employer making such election--
       ``(A) paragraph (4) shall not apply, and
       ``(B) the term `worker dividend' includes only increases in 
     compensation which are so documented and which are paid 
     within 1 calendar year of the date the increase goes into 
     effect.
       ``(c) Covered Employer.--For purposes of this section, the 
     term `covered employer' means, for any taxable year, any 
     entity the stock of which is publicly traded.
       ``(d) Aggregation Rule.--All persons treated as a single 
     employer under subsection (a) or (b) of section 52 shall be 
     treated as a single employer for purposes of determining 
     whether an individual is an employee of a covered employer.
       ``(e) Regulations.--The Secretary, in consultation with the 
     Secretary of Labor, shall promulgate regulations or other 
     guidance to ensure compliance with this section, including 
     the determination of full time status and rules to prevent 
     avoidance of the purposes of subsection (b)(2).
       ``(f) Reporting.--With respect to any taxable year in which 
     a covered employer repurchases any securities of the employer 
     on the open market, not later than the due date for the 
     return of tax for such taxable year such employer shall 
     report to the Secretary and the Chairman of the Securities 
     and Exchange Commission, in such manner as the Secretary 
     shall determine, the amount of any worker dividend paid 
     during such taxable year and any other information as the 
     Secretary shall require.''.
       (b) Clerical Amendment.--The table of chapters for subtitle 
     D of the Internal Revenue Code of 1986 is amended by 
     inserting after the item relating to chapter 36 the following 
     new item:

        ``Chapter 37--Provisions Relating to Worker Dividends''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to repurchases of employer securities in taxable 
     years beginning after the date of the enactment of this Act.
                                 ______