I 
111TH CONGRESS 
1ST SESSION H. R. 1598 
To amend the Internal Revenue Code of 1986 to impose a higher rate 
of tax on bonuses paid by businesses receiving TARP funds. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 18, 2009 
Ms. MOORE of Wisconsin 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 higher rate of tax on bonuses paid by businesses receiv-
ing TARP funds. 
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 AIG Key Executives 
Bonus Accountability and Capture (TAKE BACK) Act’’. 
SEC. 2. HIGHER RATE OF TAX ON BONUSES PAID BY BUSI-
NESSES RECEIVING TARP FUNDS. 
(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) RATE OF TAX ON BONUSES PAID BY BUSI-
NESSES RECEIVING TARP FUNDS.— 
‘‘(1) IN GENERAL.—In the case of any indi-
vidual who receives a TARP bonus during the tax-
able year, 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 indi-
vidual for the taxable year were reduced (but 
not below zero) by the TARP bonus of such in-
dividual, plus 
‘‘(B) the amount equal to the TARP 
bonus. 
‘‘(2) TARP BONUS.—For purposes of this sub-
section— 
‘‘(A) IN
GENERAL.—The term ‘TARP 
bonus’ means the excess of— 
‘‘(i) the aggregate payments in the 
nature of a bonus which are paid by any 
person if— 
‘‘(I) such person (or any prede-
cessor of such person) received assist-
ance under title I of division A the 
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Emergency 
Economic 
Stabilization 
Act of 2008 during the taxable year 
or any prior taxable year, or 
‘‘(II) such person acquired a 
major portion of a trade or business, 
or the major portion of a separate 
unit of a trade or business, from any 
person which received such assistance 
with respect to such portion or unit, 
over 
‘‘(ii) $1. 
‘‘(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
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.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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