Stop Subsidizing Multimillion Dollar Corporate Bonuses Act - Amends the Internal Revenue Code, with respect to the $1 million limitation on the deductibility of employee compensation, to: (1) extend such limitation to any individual who is a current or former officer, director, or employee of a publicly-held corporation; (2) eliminate the exemption from such limitation for compensation payable on a commission basis or upon the attainment of a performance goal; and (3) make such limitation applicable to all publicly-held corporations that are required by the Securities and Exchange Commission (SEC) to register securities and provide periodic reports to their investors.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1476 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1476
To amend the Internal Revenue Code of 1986 to expand the denial of
deduction for certain excessive employee remuneration, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
August 1, 2013
Mr. Reed (for himself and Mr. Blumenthal) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand the denial of
deduction for certain excessive employee remuneration, and for other
purposes.
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 ``Stop Subsidizing Multimillion Dollar
Corporate Bonuses Act''.
SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CERTAIN EXCESSIVE EMPLOYEE
REMUNERATION.
(a) Application to All Current and Former Employees.--
(1) In general.--Section 162(m) of the Internal Revenue
Code of 1986 is amended--
(A) by striking ``covered employee'' each place it
appears in paragraphs (1) and (4) and inserting
``covered individual'', and
(B) by striking ``such employee'' each place it
appears in subparagraphs (A) and (G) of paragraph (4)
and inserting ``such individual''.
(2) Covered individual.--Paragraph (3) of section 162(m) of
such Code is amended to read as follows:
``(3) Covered individual.--For purposes of this subsection,
the term `covered individual' means any individual who is an
officer, director, or employee of the taxpayer or a former
officer, director, or employee of the taxpayer.''.
(3) Conforming amendments.--
(A) Section 48D(b)(3)(A) of such Code is amended by
inserting ``(as in effect for taxable years beginning
before January 1, 2014)'' after ``section 162(m)(3)''.
(B) Section 409A(b)(3)(D)(ii) of such Code is
amended by inserting ``(as in effect for taxable years
beginning before January 1, 2014)'' after ``section
162(m)(3)''.
(b) Expansion of Applicable Employee Remuneration.--
(1) Elimination of exception for commission-based pay.--
(A) In general.--Paragraph (4) of section 162(m) of
such Code, as amended by subsection (a), is amended by
striking subparagraph (B) and by redesignating
subparagraphs (C) through (G) as subparagraphs (B)
through (F), respectively.
(B) Conforming amendments.--
(i) Section 162(m)(5) of such Code is
amended--
(I) by striking ``subparagraphs
(B), (C), and (D) thereof'' in
subparagraph (E) and inserting
``subparagraphs (B) and (C) thereof'',
and
(II) by striking ``subparagraphs
(F) and (G)'' in subparagraph (G) and
inserting ``subparagraphs (E) and
(F)''.
(ii) Section 162(m)(6) of such Code is
amended--
(I) by striking ``subparagraphs
(B), (C), and (D) thereof'' in
subparagraph (D) and inserting
``subparagraphs (B) and (C) thereof'',
and
(II) by striking ``subparagraphs
(F) and (G)'' in subparagraph (G) and
inserting ``subparagraphs (E) and
(F)''.
(2) Inclusion of performance-based compensation.--
(A) In general.--Paragraph (4) of section 162(m) of
the Internal Revenue Code of 1986, as amended by
subsection (a) and paragraph (1) of this subsection, is
amended by striking subparagraph (B) and redesignating
subparagraphs (C) through (F) as subparagraphs (B)
through (E), respectively.
(B) Conforming amendments.--
(i) Section 162(m)(5) of such Code, as
amended by paragraph (1), is amended--
(I) by striking ``subparagraphs (B)
and (C) thereof'' in subparagraph (E)
and inserting ``subparagraph (B)
thereof'', and
(II) by striking ``subparagraphs
(E) and (F)'' in subparagraph (G) and
inserting ``subparagraphs (D) and
(E)''.
(ii) Section 162(m)(6) of such Code, as
amended by paragraph (1), is amended--
(I) by striking ``subparagraphs (B)
and (C) thereof'' in subparagraph (D)
and inserting ``subparagraph (B)
thereof'', and
(II) by striking ``subparagraphs
(E) and (F)'' in subparagraph (G) and
inserting ``subparagraphs (D) and
(E)''.
(c) Expansion of Applicable Employer.--Paragraph (2) of section
162(m) of the Internal Revenue Code of 1986 is amended to read as
follows:
``(2) Publicly held corporation.--For purposes of this
subsection, the term `publicly held corporation' means any
corporation which is an issuer (as defined in section 3 of the
Securities Exchange Act of 1934 (15 U.S.C. 78c))--
``(A) the securities of which are registered under
section 12 of such Act (15 U.S.C. 78l), or
``(B) that is required to file reports under
section 15(d) of such Act (15 U.S.C. 780(d)).''.
(d) Regulatory Authority.--
(1) In general.--Section 162(m) of the Internal Revenue
Code of 1986 is amended by adding at the end the following new
paragraph:
``(7) Regulations.--The Secretary may prescribe such
guidance, rules, or regulations, including with respect to
reporting, as are necessary to carry out the purposes of this
subsection.''.
(2) Conforming amendment.--Paragraph (6) of section 162(m)
of such Code is amended by striking subparagraph (H).
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S6235-6236)
Read twice and referred to the Committee on Finance.
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