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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1572 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1572

 To amend the Internal Revenue Code of 1986 to impose a 90 percent tax 
       on bonuses paid by business that receive TARP assistance.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             March 17, 2009

  Mr. Thompson of California 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 90 percent tax 
       on bonuses paid by business that receive TARP assistance.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taxpayer Protection Act''.

SEC. 2. 90 PERCENT TAX ON BONUSES PAID BY BUSINESSES THAT RECEIVE TARP 
              ASSISTANCE.

    (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) 90 Percent Tax on Bonuses Paid by Businesses That Receive 
TARP Assistance.--
            ``(1) In general.--In the case of any individual who 
        receives a bonus during the taxable year from a TARP business, 
        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 90 percent of such bonus.
            ``(2) TARP business.--For purposes of this subsection--
                    ``(A) In general.--The term `TARP business' means 
                any person (or any predecessor of such person) who 
                received assistance under title I of division A the 
                Emergency Economic Stabilization Act of 2008 during the 
                taxable year or any prior taxable year.
                    ``(B) 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) Bonus.--For purposes of this subsection, a bonus does 
        not include any amount payable to an individual for services 
        performed by such individual at a regular hourly, daily, 
        weekly, monthly, or similar periodic rate, and does not include 
        payments to an employee as commissions, welfare and fringe 
        benefits, or expense reimbursements.
            ``(4) Application.--Paragraph (1) shall not apply to any 
        bonus paid by a TARP business after the date on which such 
        business has repaid to the United States all of the assistance 
        such business received under title I of division A the 
        Emergency Economic Stabilization Act of 2008.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2008.
                                 <all>
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