II 

117TH CONGRESS 

2D SESSION S. 3933 

To amend the Internal Revenue Code of 1986 to impose an income tax 

on excess profits of certain corporations. 

IN THE SENATE OF THE UNITED STATES 

MARCH 28, 2022 

Mr. SANDERS (for himself and Mr. MARKEY) 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 

an income tax on excess profits of certain corporations. 

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 ‘‘Ending Corporate 

5 Greed Act’’. 

6 SEC. 2. TAX ON EXCESS BUSINESS PROFITS OF CERTAIN 

7 CORPORATIONS. 

8 (a) IN GENERAL.—Subchapter A of chapter 1 of the 

9 Internal Revenue Code of 1986 is amended by adding at 

10 the end the following new part: 


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•S 3933 IS

1 ‘‘PART VIII—EXCESS BUSINESS PROFITS 

‘‘Sec. 59B. Tax on excess business profits of taxpayers with substantial gross 

receipts. 

2 ‘‘SEC. 59B. TAX ON EXCESS BUSINESS PROFITS OF TAX3 PAYERS WITH SUBSTANTIAL GROSS RE4 CEIPTS. 

5 ‘‘(a) IMPOSITION OF TAX.—There is hereby imposed 

6 on each applicable taxpayer for any taxable year a tax 

7 equal to 95 percent of the excess profits for the taxable 

8 year. Such tax shall be in addition to any other tax im9 posed by this subtitle. 

10 ‘‘(b) LIMITATION.—The amount of tax imposed 

11 under subsection (a) for any taxable year shall not exceed 

12 75 percent of the modified taxable income of the taxpayer 

13 for such taxable year. 

14 ‘‘(c) EXCESS PROFITS.—For purposes of this sec15 tion— 

16 ‘‘(1) IN GENERAL.—The term ‘excess profits’ 

17 means, with respect to any applicable taxpayer for 

18 any taxable year, the excess of— 

19 ‘‘(A) the modified taxable income of the 

20 taxpayer for the taxable year, over 

21 ‘‘(B) the average of the inflation adjusted 

22 modified taxable income of the taxpayer for tax23 able years beginning in 2015, 2016, 2017, 

24 2018, and 2019. 


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•S 3933 IS

1 ‘‘(2) INFLATION ADJUSTED MODIFIED TAXABLE

2 INCOME.— 

3 ‘‘(A) IN GENERAL.—The term ‘inflation 

4 adjusted modified taxable income’ means, with 

5 respect to any taxable year described in para6 graph (1)(B), the modified adjusted gross in7 come for such taxable year increased by an 

8 amount equal to— 

9 ‘‘(i) such modified adjusted gross in10 come, multiplied by 

11 ‘‘(ii) the cost-of-living adjustment de12 termined under section 1(f)(3) for the cal13 endar year in which the taxable year de14 scribed in paragraph (1)(A) begins, cal15 culated by using in section 1(f)(3)(A)(ii) 

16 the CPI for the calendar year immediately 

17 before the calendar year in which the tax18 able year for which the increase under this 

19 paragraph is determined in lieu of the CPI 

20 for calendar year 2016. 

21 ‘‘(B) ROUNDING.—Any increase deter22 mined under subparagraph (A) shall be rounded 

23 to the nearest multiple of $500. 

24 ‘‘(d) MODIFIED TAXABLE INCOME.—For purposes of 

25 this section, the term ‘modified taxable income’ means, 


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•S 3933 IS

1 with respect to any taxable year, the taxable income of 

2 the taxpayer computed under this chapter for such taxable 

3 year, determined with the following modifications: 

4 ‘‘(1) GLOBAL INTANGIBLE LOW-TAXED IN5 COME.—In determining the amount of global intan6 gible low-taxed income included in income for the 

7 taxable year, the taxpayer’s net deemed tangible in8 come return for the taxable year under section 

9 951A(b)(1)(B) shall be zero. 

10 ‘‘(2) DEDUCTIONS FOR FDII AND GILTI.—No 

11 deduction shall be allowed under section 250. 

12 ‘‘(3) DEPRECIATION SYSTEM.—In the case of 

13 tangible property, the depreciation deduction allow14 able under section 167 shall be determined under 

15 the alternative depreciation system of section 

16 168(g). 

17 ‘‘(4) RESEARCH AND EXPERIMENTAL EX18 PENSES.—Section 174 shall be applied to amounts 

19 paid or incurred in any taxable year beginning on or 

20 before December 31, 2021, in the same manner as 

21 it is applied to amounts paid or incurred in taxable 

22 years beginning after such date. 

23 ‘‘(5) DEDUCTIONS FOR EMPLOYEE REMUNERA24 TION.— 


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•S 3933 IS

1 ‘‘(A) IN GENERAL.—Section 162(m) shall 

2 be applied— 

3 ‘‘(i) by substituting ‘covered individual 

4 (as defined in section 59B(d)(5)(B))’ for 

5 ‘covered employee’ each place it appears in 

6 paragraphs (1) and (4) thereof, 

7 ‘‘(ii) by treating any reference to an 

8 ‘employee’ in paragraphs (1) and (4) 

9 thereof as a reference to an ‘individual’, 

10 and 

11 ‘‘(iii) by substituting ‘was required to 

12 file reports under section 15(d) of such Act 

13 (15 U.S.C. 78o(d)) at any time during the 

14 3-taxable year period ending with the tax15 able year’ for ‘is required to file reports 

16 under section 15(d) of such Act (15 U.S.C. 

17 78o(d))’ in paragraph (2) thereof. 

18 ‘‘(B) COVERED INDIVIDUAL.—For pur19 poses of applying this paragraph to section 

20 162(m), the term ‘covered individual’ means 

21 any individual who performs services (directly 

22 or indirectly) for the taxpayer (or any prede23 cessor) for any taxable year beginning after De24 cember 31, 2021. 


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•S 3933 IS

1 ‘‘(e) APPLICABLE TAXPAYER.—For purposes of this 

2 section— 

3 ‘‘(1) IN GENERAL.—The term ‘applicable tax4 payer’ means, with respect to any taxable year, a 

5 taxpayer— 

6 ‘‘(A) which is a corporation other than a 

7 regulated investment company, a real estate in8 vestment trust, or an S corporation, and 

9 ‘‘(B) the average annual gross receipts of 

10 which for the 3-taxable-year period ending with 

11 the preceding taxable year are at least 

12 $500,000,000. 

13 ‘‘(2) GROSS RECEIPTS.— 

14 ‘‘(A) SPECIAL RULE FOR FOREIGN PER15 SONS.—In the case of a foreign person the 

16 gross receipts of which are taken into account 

17 for purposes of paragraph (1)(B), only gross re18 ceipts which are taken into account in deter19 mining income which is effectively connected 

20 with the conduct of a trade or business within 

21 the United States shall be taken into account. 

22 In the case of a taxpayer which is a foreign per23 son, the preceding sentence shall not apply to 

24 the gross receipts of any United States person 


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•S 3933 IS

1 which are aggregated with the taxpayer’s gross 

2 receipts by reason of paragraph (3). 

3 ‘‘(B) OTHER RULES MADE APPLICABLE.— 

4 Rules similar to the rules of section 448(c)(3) 

5 shall apply in determining gross receipts for 

6 purposes of this section. 

7 ‘‘(3) AGGREGATION RULES.—All persons treat8 ed as a single employer under subsection (a) of sec9 tion 52 shall be treated as 1 person for purposes of 

10 this subsection, except that in applying section 1563 

11 for purposes of section 52, the exception for foreign 

12 corporations under section 1563(b)(2)(C) shall be 

13 disregarded. 

14 ‘‘(f) TERMINATION.—This section shall not apply to 

15 any taxable year beginning after December 31, 2024.’’. 

16 (b) CONFORMING AMENDMENT.—The table of sub17 chapters for subchapter A of chapter 1 of the Internal 

18 Revenue Code of 1986 is amended by adding at the end 

19 the following new item: 

‘‘PART VIII—EXCESS BUSINESS PROFITS’’. 

20 (c) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to taxable years beginning after 

22 December 31, 2021. 

Æ 


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