II 

111TH CONGRESS 

2D SESSION S. 3007 

To amend the Internal Revenue Code of 1986 to impose a 50 percent 

tax on bonuses paid by TARP recipients, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 11, 2010 

Mr. BROWN of Ohio 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 50 percent tax on bonuses paid by TARP recipients, 

and for other purposes. 

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 ‘‘Wall Street Bonus Tax 

5 Act’’. 


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1 SEC. 2. EXCISE TAX ON BONUSES RECEIVED BY EMPLOY2 EES OF BUSINESSES RECEIVING TARP 

3 FUNDS. 

4 (a) IN GENERAL.—Chapter 46 of the Internal Rev5 enue Code of 1986 is amended by adding at the end the 

6 following new section: 

7 ‘‘SEC. 4999A. BONUSES PAID BY TARP RECIPIENTS. 

8 ‘‘(a) IN GENERAL.—In the case of any payment of 

9 compensation during 2010 in the nature of a bonus by 

10 a TARP recipient to any employee or former employee of 

11 such recipient, there is hereby imposed a tax equal to 50 

12 percent of so much of such compensation as exceeds 

13 $25,000. 

14 ‘‘(b) TAX PAID BY BONUS RECIPIENT.—The tax im15 posed by this section shall be paid by such employee or 

16 former employee. 

17 ‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur18 poses of this section— 

19 ‘‘(1) TARP RECIPIENT.—The term ‘TARP re20 cipient’ means any person who receives funds under 

21 title I of the Emergency Economic Stabilization Act 

22 of 2008. 

23 ‘‘(2) EMPLOYEE.—The term ‘employee’ includes 

24 officers and executives. 

25 ‘‘(3) ENTITIES ACQUIRED BY TARP RECIPI26 ENTS.—If more than 50 percent of the equity interVerDate Nov 24 2008 00:06 Feb 17, 2010 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3007.IS S3007

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1 ests in any person is acquired by a TARP recipient, 

2 such person shall be treated as a TARP recipient for 

3 purposes of this section and subsection (a) shall 

4 apply to applicable compensation paid by such per5 son after the earlier of the date of such acquisition 

6 or the date that such acquisition is announced. 

7 ‘‘(4) CERTAIN CONTROLLED GROUPS, ETC.—All 

8 employees who are treated as employed by a single 

9 employer under subsections (b), (c), or (m) of sec10 tion 414 shall be treated as employed by a single 

11 employer for purposes of this section.’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections 

13 for chapter 46 of such Code is amended by adding at the 

14 end the following new item: 

‘‘Sec. 4999A. Bonuses paid by TARP recipients.’’. 

15 SEC. 3. DIRECT LENDING PROGRAM FOR SMALL BUSINESS 

16 CONCERNS. 

17 (a) ESTABLISHMENT.—The Administrator of the 

18 Small Business Administration shall establish and carry 

19 out a program under which the Administrator is author20 ized to make loans directly to small business concerns. 

21 (b) ADMINISTRATION.—To the extent practicable, the 

22 Administrator of the Small Business Administration shall 

23 carry out the program established under subsection (a) in 

24 a manner similar to the loan program under section 7(a) 

25 of the Small Business Act (15 U.S.C. 636(a)). 


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1 (c) FUNDING.—The Administrator of the Small Busi2 ness Administration shall carry out the program estab3 lished under subsection (a) using amounts made available 

4 to the Administrator under section 9511 of the Internal 

5 Revenue Code of 1986. 

6 (d) SMALL BUSINESS CONCERN DEFINED.—The 

7 term ‘‘small business concern’’ has the meaning given such 

8 term under section 3(a) of the Small Business Act (15 

9 U.S.C. 632(a)). 

10 SEC. 4. SMALL BUSINESS GROWTH FUND. 

11 (a) IN GENERAL.—Chapter 98 of the Internal Rev12 enue Code of 1986 is amended by adding at the end the 

13 following new section: 

14 ‘‘SEC. 9511. SMALL BUSINESS GROWTH FUND. 

15 ‘‘(a) CREATION OF TRUST FUND.—There is estab16 lished in the Treasury of the United States a trust fund 

17 to be known as the ‘Small Business Growth Fund’, con18 sisting of such amounts as may be appropriated or cred19 ited to such Fund as provided in this section or section 

20 9602(b). 

21 ‘‘(b) TRANSFERS TO TRUST FUND.—There are here22 by appropriated to the Small Business Growth Fund 

23 amounts equivalent to the taxes received in the Treasury 

24 under section 4999A. 


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1 ‘‘(c) EXPENDITURES.—Amounts in the Small Busi2 ness Growth Fund shall be available, as provided in appro3 priations Acts, only for carrying out the direct lending 

4 program for small business concerns under section 3 of 

5 the Wall Street Bonus Act, as in effect on the date of 

6 the enactment of such Act.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for chapter 98 of such Code is amended by adding at the 

9 end the following new item: 

‘‘Sec. 9511. Small Business Growth Fund.’’. 

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

11 this section shall take effect on the date of the enactment 

12 of this Act. 

Æ 


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