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 Com-
mittee on Ways and Means, and in addition to the Committee on Finan-
cial Services, for a period to be subsequently determined by the Speaker, 
in each case for consideration of such provisions as fall within the juris-
diction of the committee concerned 
A BILL 
To impose a tax on Wall Street bonuses received from TARP 
recipients and direct revenue to mortgage workouts. 
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 ‘‘Recoupment of Wall 
Street Bonus Act’’. 
SEC. 2. BONUSES RECEIVED FROM CERTAIN TARP RECIPI-
ENTS. 
(a) IN GENERAL.—In the case of an employee or 
former employee of a covered TARP recipient, the tax im-
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posed by chapter 1 of the Internal Revenue Code of 1986 
for any taxable year shall not be less than the sum of— 
(1) the tax that would be determined under 
such chapter if the taxable income of the taxpayer 
for such taxable year were reduced (but not below 
zero) by the TARP bonus received by the taxpayer 
during such taxable year, plus 
(2) 100 percent of the TARP bonus received by 
the taxpayer during such taxable year. 
(b) TARP BONUS.—For purposes of this section— 
(1) IN GENERAL.—The term ‘‘TARP bonus’’ 
means, with respect to any individual for any taxable 
year, the lesser of— 
(A) the aggregate disqualified bonus pay-
ments received from covered TARP recipients 
during such taxable year, or 
(B) the excess of— 
(i) the adjusted gross income of the 
taxpayer for such taxable year, over 
(ii) $250,000 ($125,000 in the case of 
a married individual filing a separate re-
turn). 
(2) DISQUALIFIED BONUS PAYMENT.— 
(A) IN GENERAL.—The term ‘‘disqualified 
bonus payment’’ means any retention payment, 
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incentive payment, or other bonus which is in 
addition to any amount payable to such indi-
vidual for service performed by such individual 
at a regular hourly, daily, weekly, monthly, or 
similar periodic rate. 
(B) EXCEPTIONS.—Such term shall not in-
clude commissions, welfare or fringe benefits, or 
expense reimbursements. 
(C) WAIVER OR RETURN OF PAYMENTS.— 
Such term shall not include any amount if the 
employee irrevocably waives the employee’s enti-
tlement to such payment, or the employee re-
turns such payment to the employer, before the 
close of the taxable year in which such payment 
is due. The preceding sentence shall not apply 
if the employee receives any benefit from the 
employer in connection with the waiver or re-
turn of such payment. 
(3) REIMBURSEMENT
OF
TAX
TREATED
AS 
TARP
BONUS.—Any reimbursement by a covered 
TARP recipient of the tax imposed under subsection 
(a) shall be treated as a disqualified bonus payment 
to the taxpayer liable for such tax. 
(c) COVERED TARP RECIPIENT.—For purposes of 
this section— 
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