I 

111TH CONGRESS 

1ST SESSION H. R. 3452 

To impose a tax on Wall Street bonuses received from TARP recipients 

and direct revenue to mortgage workouts. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 31, 2009 

Ms. KAPTUR introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, 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 impose a tax on Wall Street bonuses received from TARP 

recipients and direct revenue to mortgage workouts. 

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 ‘‘Recoupment of Wall 

5 Street Bonus Act’’. 

6 SEC. 2. BONUSES RECEIVED FROM CERTAIN TARP RECIPI7 ENTS. 

8 (a) IN GENERAL.—In the case of an employee or 

9 former employee of a covered TARP recipient, the tax imVerDate Nov 24 2008 21:01 Aug 04, 2009 Jkt 079200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3452.IH H3452

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1 posed by chapter 1 of the Internal Revenue Code of 1986 

2 for any taxable year shall not be less than the sum of— 

3 (1) the tax that would be determined under 

4 such chapter if the taxable income of the taxpayer 

5 for such taxable year were reduced (but not below 

6 zero) by the TARP bonus received by the taxpayer 

7 during such taxable year, plus 

8 (2) 100 percent of the TARP bonus received by 

9 the taxpayer during such taxable year. 

10 (b) TARP BONUS.—For purposes of this section— 

11 (1) IN GENERAL.—The term ‘‘TARP bonus’’ 

12 means, with respect to any individual for any taxable 

13 year, the lesser of— 

14 (A) the aggregate disqualified bonus pay15 ments received from covered TARP recipients 

16 during such taxable year, or 

17 (B) the excess of— 

18 (i) the adjusted gross income of the 

19 taxpayer for such taxable year, over 

20 (ii) $250,000 ($125,000 in the case of 

21 a married individual filing a separate re22 turn). 

23 (2) DISQUALIFIED BONUS PAYMENT.— 

24 (A) IN GENERAL.—The term ‘‘disqualified 

25 bonus payment’’ means any retention payment, 


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1 incentive payment, or other bonus which is in 

2 addition to any amount payable to such indi3 vidual for service performed by such individual 

4 at a regular hourly, daily, weekly, monthly, or 

5 similar periodic rate. 

6 (B) EXCEPTIONS.—Such term shall not in7 clude commissions, welfare or fringe benefits, or 

8 expense reimbursements. 

9 (C) WAIVER OR RETURN OF PAYMENTS.— 

10 Such term shall not include any amount if the 

11 employee irrevocably waives the employee’s enti12 tlement to such payment, or the employee re13 turns such payment to the employer, before the 

14 close of the taxable year in which such payment 

15 is due. The preceding sentence shall not apply 

16 if the employee receives any benefit from the 

17 employer in connection with the waiver or re18 turn of such payment. 

19 (3) REIMBURSEMENT OF TAX TREATED AS

20 TARP BONUS.—Any reimbursement by a covered 

21 TARP recipient of the tax imposed under subsection 

22 (a) shall be treated as a disqualified bonus payment 

23 to the taxpayer liable for such tax. 

24 (c) COVERED TARP RECIPIENT.—For purposes of 

25 this section— 


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1 (1) IN GENERAL.—The term ‘‘covered TARP 

2 recipient’’ means— 

3 (A) any person who receives after Decem4 ber 31, 2007, capital infusions under the Emer5 gency Economic Stabilization Act of 2008 

6 which, in the aggregate, exceed $5,000,000,000, 

7 (B) the Federal National Mortgage Asso8 ciation and the Federal Home Loan Mortgage 

9 Corporation, 

10 (C) any person who is a member of the 

11 same affiliated group (as defined in section 

12 1504 of the Internal Revenue Code of 1986, de13 termined without regard to paragraphs (2) and 

14 (3) of subsection (b)) as a person described in 

15 subparagraph (A) or (B), and 

16 (D) any partnership if more than 50 per17 cent of the capital or profits interests of such 

18 partnership are owned directly or indirectly by 

19 one or more persons described in subparagraph 

20 (A), (B), or (C). 

21 (2) EXCEPTION FOR TARP RECIPIENTS WHO

22 REPAY ASSISTANCE.—A person shall be treated as 

23 described in paragraph (1)(A) for any period only 

24 if— 


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1 (A) the excess of the aggregate amount of 

2 capital infusions described in paragraph (1)(A) 

3 with respect to such person over the amounts 

4 repaid by such person to the Federal Govern5 ment with respect to such capital infusions, ex6 ceeds 

7 (B) $5,000,000,000. 

8 (d) OTHER DEFINITIONS.—Terms used in this sec9 tion which are also used in the Internal Revenue Code of 

10 1986 shall have the same meaning when used in this sec11 tion as when used in such Code. 

12 (e) COORDINATION WITH INTERNAL REVENUE CODE

13 OF 1986.—Any increase in the tax imposed under chapter 

14 1 of the Internal Revenue Code of 1986 by reason of sub15 section (a) shall not be treated as a tax imposed by such 

16 chapter for purposes of determining the amount of any 

17 credit under such chapter or for purposes of section 55 

18 of such Code. 

19 (f) REGULATIONS.—The Secretary of the Treasury, 

20 or the Secretary’s delegate, shall prescribe such regula21 tions or other guidance as may be necessary or appro22 priate to carry out the purposes of this section. 

23 (g) EFFECTIVE DATE.—This section shall apply to 

24 disqualified bonus payments received after December 31, 

25 2008, in taxable years ending after such date. 


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1 SEC. 3. DEPOSIT LOCATION FOR REVENUES RECEIVED 

2 UNDER SECTION 1. 

3 All tax revenue received as a result of section 1 shall 

4 be deposited in the appropriate account at the Department 

5 of Housing and Urban Development to fund programs 

6 under section 4. 

Æ 


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