Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB3155 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	118THCONGRESS
3	3	1
4	4	STSESSION S. 3155
5	5	To amend the Internal Revenue Code of 1986 to expand the denial of
6	6	deduction for certain excessive employee remuneration, and for other purposes.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	OCTOBER26, 2023
9	9	Mr. R
10	10	EED(for himself, Mr. BLUMENTHAL, Mr. WHITEHOUSE, Ms. BALDWIN,
11	11	Ms. W
12	12	ARREN, Mr. MERKLEY, Mr. VANHOLLEN, and Mr. SANDERS) in-
13	13	troduced the following bill; which was read twice and referred to the Com-
14	14	mittee on Finance
15	15	A BILL
16	16	To amend the Internal Revenue Code of 1986 to expand
17	17	the denial of deduction for certain excessive employee
18	18	remuneration, and for other purposes.
19	19	Be it enacted by the Senate and House of Representa-1
20	20	tives of the United States of America in Congress assembled, 2
21	21	SECTION 1. SHORT TITLE. 3
22	22	This Act may be cited as the ‘‘Stop Subsidizing Mul-4
23	23	timillion Dollar Corporate Bonuses Act’’. 5
24	24	SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CER-6
25	25	TAIN EXCESSIVE EMPLOYEE REMUNERA-7
26	26	TION. 8
27	27	(a) I
28	28	NGENERAL.— 9
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31	31	•S 3155 IS
32	32	(1) EXPANSION.—Section 162(m) of the Inter-1
33	33	nal Revenue Code of 1986 is amended— 2
34	34	(A) by striking ‘‘applicable employee remu-3
35	35	neration’’ each place it appears in paragraphs 4
36	36	(1), (4), and (5)(E) and inserting ‘‘applicable 5
37	37	remuneration’’, 6
38	38	(B) by striking ‘‘covered employee’’ each 7
39	39	place it appears in paragraphs (1) and (4) and 8
40	40	inserting ‘‘covered individual’’, and 9
41	41	(C) by striking ‘‘employee’’ each place it 10
42	42	appears in paragraph (1) and subparagraphs 11
43	43	(A), (C)(ii), and (E) of paragraph (4) and in-12
44	44	serting ‘‘individual’’. 13
45	45	(2) C
46	46	OVERED INDIVIDUAL.—Paragraph (3) of 14
47	47	section 162(m) of such Code is amended to read as 15
48	48	follows: 16
49	49	‘‘(3) C
50	50	OVERED INDIVIDUAL.—For purposes of 17
51	51	this subsection, the term ‘covered individual’ 18
52	52	means— 19
53	53	‘‘(A) any individual who performs services 20
54	54	(directly or indirectly) for the taxpayer (or any 21
55	55	predecessor) for any taxable year beginning 22
56	56	after December 31, 2022, or 23
57	57	‘‘(B) any employee— 24
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60	60	•S 3155 IS
61	61	‘‘(i) who was the principal executive 1
62	62	officer or principal financial officer of the 2
63	63	taxpayer (or any predecessor) at any time 3
64	64	during any preceding taxable year begin-4
65	65	ning after December 31, 2016, and before 5
66	66	January 1, 2023, or who was an individual 6
67	67	acting in such a capacity, or 7
68	68	‘‘(ii) the total compensation of whom 8
69	69	for any taxable year described in clause (i) 9
70	70	was required to be reported to shareholders 10
71	71	under the Securities Exchange Act of 1934 11
72	72	by reason of such individual being among 12
73	73	the 3 highest compensated officers for the 13
74	74	taxable year (other than any individual de-14
75	75	scribed in clause (i)). 15
76	76	Such term shall include any employee who would be 16
77	77	described in subparagraph (B)(ii) if the reporting 17
78	78	described in such subparagraph were required as so 18
79	79	described.’’. 19
80	80	(3) C
81	81	ONFORMING AMENDMENTS .— 20
82	82	(A) The heading for section 162(m) of the 21
83	83	Internal Revenue Code of 1986 is amended by 22
84	84	striking ‘‘E
85	85	MPLOYEE’’. 23
86	86	(B) The heading for section 162(m)(4) is 24
87	87	amended by striking ‘‘
88	88	EMPLOYEE’’. 25
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91	91	•S 3155 IS
92	92	(b) MODIFICATION OF DEFINITION OFPUBLICLY 1
93	93	H
94	94	ELDCORPORATION.—Section 162(m)(2) of the Internal 2
95	95	Revenue Code of 1986 is amended— 3
96	96	(1) by inserting ‘‘, with respect to any taxable 4
97	97	year,’’ after ‘‘means’’, and 5
98	98	(2) by striking subparagraph (B) and inserting 6
99	99	the following: 7
100	100	‘‘(B) that was required to file reports 8
101	101	under section 15(d) of such Act (15 U.S.C. 9
102	102	78o(d)) at any time during the 3-taxable year 10
103	103	period ending with such taxable year.’’. 11
104	104	(c) R
105	105	EGULATORYAUTHORITY.— 12
106	106	(1) I
107	107	N GENERAL.—Section 162(m) of the Inter-13
108	108	nal Revenue Code of 1986 is amended by adding at 14
109	109	the end the following new paragraph: 15
110	110	‘‘(7) R
111	111	EGULATIONS.—The Secretary may pre-16
112	112	scribe such guidance, rules, or regulations as are 17
113	113	necessary to carry out the purposes of this sub-18
114	114	section, including regulations— 19
115	115	‘‘(A) with respect to reporting, and 20
116	116	‘‘(B) to prevent avoidance of the purposes 21
117	117	of this section by providing compensation 22
118	118	through a pass-through or other entity.’’. 23
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121	121	•S 3155 IS
122	122	(2) CONFORMING AMENDMENT .—Paragraph (6) 1
123	123	of section 162(m) of such Code is amended by strik-2
124	124	ing subparagraph (H). 3
125	125	(d) E
126	126	FFECTIVEDATE.—The amendments made by 4
127	127	this section shall apply to taxable years beginning after 5
128	128	December 31, 2022. 6
129	129	Æ
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