H. R. 1518
IN THE HOUSE OF REPRESENTATIVES
March 16, 2009
Mr. Israel (for himself, Mr. Braley of Iowa, Mr. Chandler, Mrs. McCarthy of New York, and Mr. Massa) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to impose a higher rate of tax on bonuses paid by businesses receiving TARP funds.
This Act may be cited as the
Bailout Bonus Tax Bracket Tax Act of
Higher rate of tax on bonuses paid by businesses receiving TARP funds
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:
Rate of tax on bonuses paid by businesses receiving TARP funds
In the case of any individual who receives a TARP bonus during the taxable year, the tax imposed by this section shall be equal to—
the tax which would be imposed by this section if the taxable income of such individual for the taxable year were reduced by the TARP bonus of such individual, plus
the amount equal to the applicable percentage of the TARP bonus.
For purposes of the subsection, the applicable percentage shall be determined under the following table:
|If the aggregate TARP bonuses received during the taxable year is:||The applicable percentage is:|
|Over $100,000||100 percent.|
For purposes of this subsection—
The term TARP bonus means any payment in the nature of a bonus which is paid by any person if—
such person (or any predecessor of such person) received assistance under title I of division A the Emergency Economic Stabilization Act of 2008 during the taxable year or any prior taxable year, or
such person acquired a major portion of a trade or business, or the major portion of a separate unit of a trade or business, from any person which received such assistance with respect to such portion or unit.
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.
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.
The amendment made by this section shall apply to taxable years ending after the date of the enactment of this Act.