Wall Street Bonus Tax Act

Wall Street Bonus Tax Act - Amends the Internal Revenue Code to: (1) impose a tax on current or former employees of recipients of financial assistance under the Trouble Asset Relief Program (TARP) for 50% of any bonus exceeding $50,000 paid to them during 2010; and (2) establish in the Treasury the Small Business Growth Fund to hold revenues from such tax.

Requires the Administrator of the Small Business Administration (SBA) to establish and carry out a program to make loans directly to small business concerns. Makes amounts from such Fund available to carry out such program.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4426 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4426

 To amend the Internal Revenue Code of 1986 to impose a 50 percent tax 
                  on bonuses paid by TARP recipients.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2010

  Mr. Welch introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on Small 
Business, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to impose a 50 percent tax 
                  on bonuses paid by TARP recipients.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Wall Street Bonus Tax Act''.

SEC. 2. EXCISE TAX ON BONUSES RECEIVED BY EMPLOYEES OF BUSINESSES 
              RECEIVING TARP FUNDS.

    (a) In General.--Chapter 46 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section:

``SEC. 4999A. BONUSES PAID BY TARP RECIPIENTS.

    ``(a) In General.--In the case of any payment of compensation 
during 2010 in the nature of a bonus by a TARP recipient to any 
employee or former employee of such recipient, there is hereby imposed 
a tax equal to 50 percent of so much of such compensation as exceeds 
$50,000.
    ``(b) Tax Paid by Bonus Recipient.--The tax imposed by this section 
shall be paid by such employee or former employee.
    ``(c) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) TARP recipient.--The term `TARP recipient' means any 
        person who receives funds under title I of the Emergency 
        Economic Stabilization Act of 2008.
            ``(2) Employee.--The term `employee' includes officers and 
        executives.
            ``(3) Entities acquired by tarp recipients.--If more than 
        50 percent of the equity interests in any person is acquired by 
        a TARP recipient, such person shall be treated as a TARP 
        recipient for purposes of this section and subsection (a) shall 
        apply to applicable compensation paid by such person after the 
        earlier of the date of such acquisition or the date that such 
        acquisition is announced.
            ``(4) Certain controlled groups, etc.--All employees who 
        are treated as employed by a single employer under subsections 
        (b), (c), or (m) of section 414 shall be treated as employed by 
        a single employer for purposes of this section.''.
    (b) Clerical Amendment.--The table of sections for chapter 46 of 
such Code is amended by adding at the end the following new item:

``Sec. 4999A. Bonuses paid by TARP recipients.''.

SEC. 3. DIRECT LENDING PROGRAM FOR SMALL BUSINESS CONCERNS.

    (a) Establishment.--The Administrator of the Small Business 
Administration shall establish and carry out a program under which the 
Administrator is authorized to make loans directly to small business 
concerns.
    (b) Administration.--To the extent practicable, the Administrator 
of the Small Business Administration shall carry out the program 
established under subsection (a) in a manner similar to the loan 
program under section 7(a) of the Small Business Act (15 U.S.C. 
636(a)).
    (c) Funding.--The Administrator of the Small Business 
Administration shall carry out the program established under subsection 
(a) using amounts made available to the Administrator under section 
9511 of the Internal Revenue Code of 1986.
    (d) Small Business Concern Defined.--The term ``small business 
concern'' has the meaning given such term under section 3(a) of the 
Small Business Act (15 U.S.C. 632(a)).

SEC. 4. SMALL BUSINESS GROWTH FUND.

    (a) In General.--Chapter 98 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new section:

``SEC. 9511. SMALL BUSINESS GROWTH FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Small Business 
Growth Fund', consisting of such amounts as may be appropriated or 
credited to such Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There are hereby appropriated to 
the Small Business Growth Fund amounts equivalent to the taxes received 
in the Treasury under section 4999A.
    ``(c) Expenditures.--Amounts in the Small Business Growth Fund 
shall be available, as provided in appropriations Acts, only for 
carrying out the direct lending program for small business concerns 
under section 3 of the Wall Street Bonus Act, as in effect on the date 
of the enactment of such Act.''.
    (b) Clerical Amendment.--The table of sections for chapter 98 of 
such Code is amended by adding at the end the following new item:

``Sec. 9511. Small Business Growth Fund.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.
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