I 
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 Representa-
tives 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 
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amended by adding at the end the following new sub-
section: 
‘‘(j) 90 PERCENT TAX ON BONUSES PAID BY BUSI-
NESSES THAT RECEIVE TARP ASSISTANCE.— 
‘‘(1) IN GENERAL.—In the case of any indi-
vidual who receives a bonus during the taxable year 
from a TARP business, the tax imposed by this sec-
tion shall be equal to— 
‘‘(A) the tax which would be imposed by 
this section if the taxable income of such indi-
vidual 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 
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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
COR-
PORATIONS.—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 simi-
lar periodic rate, and does not include payments to 
an employee as commissions, welfare and fringe ben-
efits, 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 re-
ceived under title I of division A the Emergency 
Economic Stabilization Act of 2008.’’. 
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