I 
111TH CONGRESS 
1ST SESSION H. R. 1801 
To amend the Internal Revenue Code of 1986 to impose a 70 percent 
tax on certain compensation received from certain companies receiving 
Federal bailout funds. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 30, 2009 
Mr. SHERMAN (for himself, Ms. KAPTUR, Mr. FILNER, Mr. KUCINICH, and 
Mr. DEFAZIO) 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 70 percent tax on certain compensation received from 
certain companies receiving Federal bailout funds. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. TAX ON CERTAIN COMPENSATION RECEIVED 
FROM 
CERTAIN 
COMPANIES 
RECEIVING 
BAILOUT FUNDS. 
(a) IN GENERAL.—Subchapter A of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
VerDate Nov 24 2008 
00:19 Apr 01, 2009
Jkt 079200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H1801.IH
H1801
SMARTINEZ on PROD1PC64 with BILLS
‘‘PART VIII—CERTAIN COMPENSATION RECEIVED 
FROM 
CERTAIN 
COMPANIES 
RECEIVING 
BAILOUT FUNDS 
‘‘Sec. 59C. Certain compensation received from certain companies receiving 
bailout funds. 
‘‘SEC. 59C. CERTAIN COMPENSATION RECEIVED FROM CER-
TAIN 
COMPANIES 
RECEIVING 
BAILOUT 
FUNDS. 
‘‘(a) IN GENERAL.—In the case of any employee (or 
former employee) of a bailout recipient, there is hereby 
imposed (in addition to any other tax imposed by this sub-
title) a tax equal to 70 percent of the amount of excess 
compensation received by the taxpayer during the taxable 
year from any relevant employer. 
‘‘(b) EXCESS COMPENSATION.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘excess com-
pensation’ means the value of all property paid or 
transferred to the employee during the taxable year 
(including any loan that is not reasonably secured) 
which is in excess of $1,000,000. 
‘‘(2) EXCEPTIONS.—Such term shall not in-
clude any of the following: 
‘‘(A) Any amount returned by the em-
ployee to the employer within 60 days of receipt 
thereof or within 60 days of the enactment of 
VerDate Nov 24 2008 
00:19 Apr 01, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H1801.IH
H1801
SMARTINEZ on PROD1PC64 with BILLS
this Act, whichever is later. Any amount re-
turned under this subparagraph shall also be 
excluded from the definition of gross income. 
‘‘(B) To the extent explicitly allowed by 
any regulation adopted by the Secretary, shares 
of common stock of the employer (or any affil-
iate thereof) but only if the employee is re-
quired to hold such shares until the date on 
which the employer ceases to be a relevant em-
ployer. 
‘‘(C) Any amount received before the em-
ployer became a relevant employer or after the 
employer ceases to be a relevant employer, 
whether or not for services provided during the 
period when the employer was classified as a 
relevant employer, but this provision shall not 
apply if the payment is made out of assets 
which were held in trusts, or otherwise made 
unavailable to the claims of general creditors. 
‘‘(D) Any commission received by a com-
missioned sales person. For purposes of this 
subparagraph, a commission is an amount of 
compensation payable determinable solely by 
reference to the products sold by the commis-
sioned sales person through direct interaction 
VerDate Nov 24 2008 
00:19 Apr 01, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H1801.IH
H1801
SMARTINEZ on PROD1PC64 with BILLS