Tax on bonuses received from certain TARP recipients

[Guest LAW]

Latest Major Action: 3/11/2010 Senate floor actions. Status: Considered by Senate.

 

H.R.1586

 

Title: To impose an additional tax on bonuses received from certain TARP recipients.

Sponsor: Rep Rangel, Charles B. [NY-15] (introduced 3/18/2009) Cosponsors (51)

Related Bills: H.R.1518, H.R.1527, H.R.1542, H.R.1543, H.R.1572, H.R.1598, H.R.1801, H.R.3452

Latest Major Action: 3/11/2010 Senate floor actions. Status: Considered by Senate.

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SUMMARY AS OF:

3/19/2009--Passed House without amendment. (There is 1 other summary)

 

(This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)

 

Imposes an additional income tax on bonuses paid to employees or former employees of covered Troubled Assets Relief Program (TARP) recipients after December 31, 2008. Defines "covered TARP recipient" to include: (1) entities and their affiliates and partnerships that received capital infusions under the Emergency Economic Stabilization Act of 2008 exceeding $5 billion after December 31, 2007; and (2) the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Exempts entities that repay TARP amounts exceeding a $5 billion threshold.

 

Sets the rate of such tax at 90% of the lesser of: (1) the bonus amounts paid; or (2) the amount of such taxpayer's adjusted gross income exceeding $250,000 ($125,000 in the case of a married individual filing a separate return). Exempts any employee who irrevocably waives or returns a bonus payment before the close of the taxable year in which such payment is due.

 

Authorizes the Secretary of the Treasury to prescribe regulations to carry out this Act.

 

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SUMMARY AS OF:

3/18/2009--Introduced.

 

Imposes an additional income tax on bonuses paid to employees or former employees of covered Troubled Assets Relief Program (TARP) recipients. Defines "covered TARP recipient" to include: (1) entities and their affiliates that received capital infusions under the Emergency Economic Stabilization Act of 2008 exceeding $5 billion; and (2) the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Exempts entities that repay TARP amounts exceeding a $5 billion threshold.

 

Sets the rate of such tax at 90% of the lesser of: (1) the bonus amounts paid; or (2) the amount of such taxpayer's adjusted gross income exceeding $250,000 ($125,000 in the case of a married individual filing a separate return). Exempts any employee who irrevocably waives or returns a bonus payment before the close of the taxable year in which such payment is due.