II 

118TH CONGRESS 

1ST SESSION S. 800 

To amend the Internal Revenue Code of 1986 to impose a higher rate 

of tax on bonuses and profits from sales of stock received by executives 

employed by failing banks that were closed and for which the Federal 

Deposit Insurance Corporation has been appointed as conservator or 

receiver. 

IN THE SENATE OF THE UNITED STATES 

MARCH 14, 2023 

Mr. BLUMENTHAL introduced the following bill; which was read twice and 

referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to impose 

a higher rate of tax on bonuses and profits from sales 

of stock received by executives employed by failing banks 

that were closed and for which the Federal Deposit Insurance Corporation has been appointed as conservator 

or receiver. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Deliver Executive Prof5 its On Seized Institutions to Taxpayers Act’’ or the ‘‘DE6 POSIT Act’’. 


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1 SEC. 2. SENSE OF THE SENATE. 

2 It is the sense of the Senate that the revenue raised 

3 from the tax imposed under subsection (k) of section 1 

4 of the Internal Revenue Code of 1986 (as added by section 

5 3) will be returned to the Deposit Insurance Fund (as de6 fined in section 3 of the Federal Deposit Insurance Act 

7 (12 U.S.C. 1813)). 

8 SEC. 3. HIGHER RATE OF TAX ON BONUSES AND STOCK 

9 PROFITS RECEIVED BY CERTAIN BANK EX10 ECUTIVES. 

11 (a) IN GENERAL.—Section 1 of the Internal Revenue 

12 Code of 1986 is amended by adding at the end the fol13 lowing new subsection: 

14 ‘‘(k) RATE OF TAX ON PROFITS RECEIVED BY CER15 TAIN BANK EXECUTIVES.— 

16 ‘‘(1) IN GENERAL.—In the case of any applica17 ble individual who receives any excluded profits dur18 ing the taxable year, the tax imposed by this section 

19 shall be equal to— 

20 ‘‘(A) the tax which would be imposed by 

21 this section if the taxable income of such indi22 vidual for the taxable year were reduced (but 

23 not below zero) by the amount of the excluded 

24 profits received by such individual during such 

25 taxable year, plus 


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1 ‘‘(B) 90 percent of the excluded profits de2 scribed in subclause (I) of paragraph (2)(B)(i) 

3 which were received by such individual during 

4 such taxable year, plus 

5 ‘‘(C) 100 percent of the excluded profits 

6 described in subclause (II) of such paragraph 

7 which were received by such individual during 

8 such taxable year. 

9 ‘‘(2) DEFINITIONS.—For purposes of this sub10 section— 

11 ‘‘(A) APPLICABLE INDIVIDUAL.—The term 

12 ‘applicable individual’ means any individual— 

13 ‘‘(i) who— 

14 ‘‘(I) was employed by an insured 

15 depository institution for which the 

16 Federal Deposit Insurance Corpora17 tion has been appointed conservator 

18 or receiver, and 

19 ‘‘(II) served as an executive offi20 cer for such institution prior to such 

21 conservatorship or receivership, and 

22 ‘‘(ii) with respect to the taxable year 

23 in which the excluded profits were received, 

24 whose adjusted gross income (reduced by 

25 the amount of such excluded profits) for 


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1 such taxable year was greater than 

2 $250,000. 

3 ‘‘(B) EXCLUDED PROFITS.— 

4 ‘‘(i) IN GENERAL.—The term ‘ex5 cluded profits’ means, with respect to any 

6 applicable individual for any taxable 

7 year— 

8 ‘‘(I) any payment in the nature 

9 of a bonus which is paid— 

10 ‘‘(aa) after March 1, 2023, 

11 and 

12 ‘‘(bb) by any insured deposi13 tory institution within the 60-day 

14 period prior to the date on which 

15 the Federal Deposit Insurance 

16 Corporation was appointed con17 servator or receiver for such in18 stitution, or 

19 ‘‘(II) any profit made by such ap20 plicable individual from the sale of 

21 any security of the insured depository 

22 institution that employs such applica23 ble individual, if that sale occurs not 

24 more than 60 days before the date on 

25 which the Federal Deposit Insurance 


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1 Corporation is appointed conservator 

2 or receiver with respect to the insured 

3 depository institution. 

4 ‘‘(ii) CONTROLLED GROUPS.— 

5 ‘‘(I) IN GENERAL.—For purposes 

6 of clause (i), all persons treated as a 

7 single employer under subsection (a) 

8 or (b) of section 52 or under sub9 section (m) or (o) of section 414 shall 

10 be treated as one person. 

11 ‘‘(II) INCLUSION OF FOREIGN

12 CORPORATIONS.—For purposes of 

13 subclause (I), in applying subsections 

14 (a) and (b) of section 52 to this sec15 tion, section 1563 shall be applied 

16 without regard to subsection (b)(2)(C) 

17 thereof. 

18 ‘‘(C) EXECUTIVE OFFICER.—The term ‘ex19 ecutive officer’ means, with respect to any in20 sured depository institution, its president, any 

21 vice president of such institution in charge of a 

22 principal business unit, division or function 

23 (such as sales, administration or finance), any 

24 other officer who performs a policy making 

25 function or any other person who performs 


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1 similar policy making functions for such institu2 tion. Executive officers of subsidiaries may be 

3 deemed executive officers of such institution if 

4 they perform such policy making functions for 

5 such institution. 

6 ‘‘(D) INSURED DEPOSITORY INSTITU7 TION.—The term ‘insured depository institu8 tion’ has the same meaning given such term 

9 under section 3 of the Federal Deposit Insur10 ance Act (12 U.S.C. 1813).’’. 

11 (b) EFFECTIVE DATE.—The amendment made by 

12 this section shall apply to taxable years ending after the 

13 date of the enactment of this Act. 

Æ 


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