[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1654 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 1654
To amend the Internal Revenue Code of 1986 to impose a higher rate of
tax on bonuses and profits from sales of stock received by executives
employed by failing banks that were closed and for which the Federal
Deposit Insurance Corporation has been appointed as conservator or
receiver.
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IN THE HOUSE OF REPRESENTATIVES
March 17, 2023
Mr. Schiff (for himself, Mr. Levin, Mr. Gomez, Mr. Takano, Ms.
McCollum, Mrs. Watson Coleman, Mr. Garamendi, Mr. Mullin, Mr. Grijalva,
Mr. McGovern, Ms. Pingree, Mr. Goldman of New York, Mr. Swalwell, Mr.
Evans, Mr. Boyle of Pennsylvania, Mr. Pocan, Ms. Eshoo, Mr. Carson, and
Mr. Khanna) 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 higher rate of
tax on bonuses and profits from sales of stock received by executives
employed by failing banks that were closed and for which the Federal
Deposit Insurance Corporation has been appointed as conservator or
receiver.
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 ``Deliver Executive Profits On Seized
Institutions to Taxpayers Act'' or the ``DEPOSIT Act''.
SEC. 2. SENSE OF THE CONGRESS.
It is the sense of the Congress that the revenue raised from the
tax imposed under section 1(k) of the Internal Revenue Code of 1986 (as
added by section 3) will be returned to the Deposit Insurance Fund (as
defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813)).
SEC. 3. HIGHER RATE OF TAX ON BONUSES AND STOCK PROFITS RECEIVED BY
CERTAIN BANK EXECUTIVES.
(a) In General.--Section 1 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new subsection:
``(k) Rate of Tax on Profits Received by Certain Bank Executives.--
``(1) In general.--In the case of any applicable individual
who receives any excluded profits during the taxable year, the
tax imposed by this section shall be equal to--
``(A) the tax which would be imposed by this
section if the taxable income of such individual for
the taxable year were reduced (but not below zero) by
the amount of the excluded profits received by such
individual during such taxable year, plus
``(B) 90 percent of the excluded profits described
in subclause (I) of paragraph (2)(B)(i) which were
received by such individual during such taxable year,
plus
``(C) 100 percent of the excluded profits described
in subclause (II) of such paragraph which were received
by such individual during such taxable year.
``(2) Definitions.--For purposes of this subsection--
``(A) Applicable individual.--The term `applicable
individual' means any individual--
``(i) who--
``(I) was employed by an insured
depository institution for which the
Federal Deposit Insurance Corporation
has been appointed conservator or
receiver, and
``(II) served as an executive
officer for such institution prior to
such conservatorship or receivership,
and
``(ii) with respect to the taxable year in
which the excluded profits were received, whose
adjusted gross income (reduced by the amount of
such excluded profits) for such taxable year
was greater than $250,000.
``(B) Excluded profits.--
``(i) In general.--The term `excluded
profits' means, with respect to any applicable
individual for any taxable year--
``(I) any payment in the nature of
a bonus which is paid--
``(aa) after March 1, 2023,
and
``(bb) by any insured
depository institution within
the 60-day period prior to the
date on which the Federal
Deposit Insurance Corporation
was appointed conservator or
receiver for such institution,
or
``(II) any profit made by such
applicable individual from the sale of
any security of the insured depository
institution that employs such
applicable individual, if that sale
occurs not more than 60 days before the
date on which the Federal Deposit
Insurance Corporation is appointed
conservator or receiver with respect to
the insured depository institution.
``(ii) Controlled groups.--
``(I) In general.--For purposes of
clause (i), all persons treated as a
single employer under subsection (a) or
(b) of section 52 or under subsection
(m) or (o) of section 414 shall be
treated as one person.
``(II) Inclusion of foreign
corporations.--For purposes of
subclause (I), in applying subsections
(a) and (b) of section 52 to this
section, section 1563 shall be applied
without regard to subsection (b)(2)(C)
thereof.
``(C) Executive officer.--The term `executive
officer' means, with respect to any insured depository
institution, its president, any vice president of such
institution in charge of a principal business unit,
division or function (such as sales, administration or
finance), any other officer who performs a policy
making function or any other person who performs
similar policy making functions for such institution.
Executive officers of subsidiaries may be deemed
executive officers of such institution if they perform
such policy making functions for such institution.
``(D) Insured depository institution.--The term
`insured depository institution' has the same meaning
given such term under section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years ending after the date of the enactment of this Act.
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