H.R. 1542House111th Congress (2009-2011)In Committee

To amend the Internal Revenue Code of 1986 to impose a 100 percent tax on bonuses paid by businesses that receive TARP assistance and are majority owned by the Federal Government.

Introduced March 17, 2009

Legislative Activity

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2 earlier actions
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

March 17, 2009

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HouseIntro Referral

Introduced in House

March 17, 2009

HouseIntro Referral

Sponsor introductory remarks on measure. (CR H3448)

March 17, 2009

HouseIntro Referral

Referred to the House Committee on Ways and Means.

March 17, 2009

Floor Debate

2 members

What members said about H.R. 1542 on the floor

2 Democrats
Keith Ellison
Rep. Keith EllisonD-MN-5 · May 7, 2009

Thank you, Mr. Speaker. I am here to tonight to claim the time on behalf of the Progressive Caucus. The Progressive Caucus come to the floor every week to talk about a progressive vision for America,…

Gwen Moore
Rep. Gwen MooreD-WI-4 · May 7, 2009

Thank you, Mr. Ellison. I would start out by acknowledging all of the tremendous work that the 9 to 5 Organization, founded in Milwaukee, Wisconsin, has done around the issue of the importance of…

Bill Text

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Introduced in HouseIssued March 17, 2009

I

111th CONGRESS

1st Session

H. R. 1542

IN THE HOUSE OF REPRESENTATIVES

March 17, 2009

Mrs. Maloney (for herself, Mr. Pomeroy, Mr. Engel, Ms. Hirono, Mr. Higgins, and Mr. Space) 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 100 percent tax on bonuses paid by businesses that receive TARP assistance and are majority owned by the Federal Government.

1.

100 percent tax on bonuses paid by businesses that receive TARP assistance and are majority owned by the Federal Government

(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)

100 percent tax on bonuses paid by businesses that receive TARP assistance and are majority owned by the Federal Government

(1)

In general

In the case of any individual who receives a bonus during the taxable year from a covered TARP person, 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 by such bonus, plus

(B)

the amount equal to such bonus.

(2)

Bonus

For purposes of this subsection—

(A)

In general

The term bonus means any payment in the nature of a bonus which is paid by a person if—

(i)

such person (or any predecessor of such person) received assistance under title I of division A of the Emergency Economic Stabilization Act of 2008 during the taxable year or any prior taxable year, and

(ii)

at the time such bonus is paid the ownership interest of the Federal Government in such person is—

(I)

in the case of a corporation, greater than 50 percent of the stock of such person (by vote or value),

(II)

in the case of a partnership, greater than 50 percent or more of the profits interests or capital interests in such person, and

(III)

in any other case, greater than 50 percent or more of the beneficial interests in such person.

(B)

Exception

The term bonus does not include compensation in the nature of a commission or salary.

(C)

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.

(3)

Regulations

The Secretary shall issue such regulations or other guidance as may be necessary to carry out this subsection.

.

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2008.