< Back to H.R. 4412 (111th Congress, 2009–2010)

Text of the Wall Street Bonus Tax Act

This bill was introduced on December 19, 2009, in a previous session of Congress, but was not enacted. The text of the bill below is as of Dec 19, 2009 (Introduced).

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Source: GPO

I

111th CONGRESS

1st Session

H. R. 4412

IN THE HOUSE OF REPRESENTATIVES

December 19, 2009

introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend the Internal Revenue Code of 1986 to impose a 50 percent tax on bonuses paid by TARP recipients.

1.

Short title

This Act may be cited as the Wall Street Bonus Tax Act.

2.

Excise tax on bonuses received by employees of businesses receiving TARP funds

(a)

In general

Chapter 46 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

4999A.

Bonuses paid by TARP recipients

(a)

In general

In the case of any payment of compensation during 2010 in the nature of a bonus by a TARP recipient to any employee or former employee of such recipient, there is hereby imposed a tax equal to 50 percent of so much of such compensation as exceeds $50,000.

(b)

Tax paid by TARP recipient

The tax imposed by this section shall be paid by such TARP recipient.

(c)

Definitions and special rules

For purposes of this section—

(1)

TARP recipient

The term TARP recipient means any person who receives funds under title I of the Emergency Economic Stabilization Act of 2008.

(2)

Employee

The term employee includes officers and executives.

(3)

Entities acquired by TARP recipients

If more than 50 percent of the equity interests in any person is acquired by a TARP recipient, such person shall be treated as a TARP recipient for purposes of this section and subsection (a) shall apply to applicable compensation paid by such person after the earlier of the date of such acquisition or the date that such acquisition is announced.

(4)

Certain controlled groups, etc

All employees who are treated as employed by a single employer under subsections (b), (c), or (m) of section 414 shall be treated as employed by a single employer for purposes of this section.

.

(b)

Clerical amendment

The table of sections for chapter 46 of such Code is amended by adding at the end the following new item:

Sec. 4999A. Bonuses paid by TARP recipients.

.

3.

Direct lending program for small business concerns

(a)

Establishment

The Administrator of the Small Business Administration shall establish and carry out a program under which the Administrator is authorized to make loans directly to small business concerns.

(b)

Administration

To the extent practicable, the Administrator of the Small Business Administration shall carry out the program established under subsection (a) in a manner similar to the loan program under section 7(a) of the Small Business Act (15 U.S.C. 636(a)).

(c)

Funding

The Administrator of the Small Business Administration shall carry out the program established under subsection (a) using amounts made available to the Administrator under section 9511 of the Internal Revenue Code of 1986.

(d)

Small business concern defined

The term small business concern has the meaning given such term under section 3(a) of the Small Business Act (15 U.S.C. 632(a)).

4.

Small Business Growth Fund

(a)

In general

Chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

9511.

Small Business Growth Fund

(a)

Creation of trust fund

There is established in the Treasury of the United States a trust fund to be known as the Small Business Growth Fund, consisting of such amounts as may be appropriated or credited to such Fund as provided in this section or section 9602(b).

(b)

Transfers to Trust Fund

There are hereby appropriated to the Small Business Growth Fund amounts equivalent to the taxes received in the Treasury under section 4999A.

(c)

Expenditures

Amounts in the Small Business Growth Fund shall be available, as provided in appropriations Acts, only for carrying out the direct lending program for small business concerns under section 3 of the Wall Street Bonus Act, as in effect on the date of the enactment of such Act.

.

(b)

Clerical amendment

The table of sections for chapter 98 of such Code is amended by adding at the end the following new item:

Sec. 9511. Small Business Growth Fund.

.

(c)

Effective date

The amendments made by this section shall take effect on the date of the enactment of this Act.