,,ii  #aacth ,,congress  #b;d ,session  
,s4 #bhie  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ah1
 #bjad ,mr4 ,brown 7for himself and ,mr4
 ,durbin7 introduced the following bill2
 which was read twice and referred to   
the ,committee on ,finance  ,a ,,bill   
,to amend the ,internal ,revenue ,code  
to include in income the unrepatriated  
earnings of groups that include an      
inverted corporation4  #a4 ,short title 
,this ,act may be cited as the ,pay     
,what ,you ,owe ,before ,you ,go ,act4  
#b4 ,recapture of unrepatriated earnings
 of groups including an inverted        
corporation  7a7 ,in general ,section   
#ghgd of the ,internal ,revenue ,code of
 #aihf is amended by redesignating      
subsection 7g7 as subsection 7h7 and by 
inserting after subsection 7f7 the      
following new subsection3  7g7          
,recapture of tax on unrepatriated      
earnings  7#a7 ,in general ,the subpart 
,f income of any applicable controlled  
foreign corporation for its last taxable

 year ending before the acquisition date
 shall be increased by the accumulated  
deferred foreign income of the          
corporation4  7#b7 ,applicable          
controlled foreign corporation ,for     
purposes of this subsection-- 7,a7 ,in  
general ,the term applicable controlled 
foreign corporation means any controlled
 foreign corporation with respect to    
which-- 7i7 a covered entity was a      
,united ,states shareholder at any time 
during the #e-year period ending on the 
acquisition date1 or  7ii7 a member of  
the same expanded affiliated group as a 
covered entity was a ,united ,states    
shareholder at any time during the      
#e-year period ending on the acquisition
 date4  7,b7 ,covered entity ,the term  
covered entity means1 with respect to a 
controlled foreign corporation1 any     
entity which-- 7i7 is treated as a      
surrogate foreign corporation under     
subsection 7a77#b77;,b71 determined--   
7,i7 by substituting ,september #ah1    
#bjad for ,march #d1 #bjjc each place it

 appears1  7,,ii7 by substituting more  
than #ej percent for at least #fj       
percent in clause 7ii7 thereof1 and     
7,,iii7 by disregarding clause 7iii7    
thereof1 and  7ii7 is not treated as a  
domestic corporation by reason of       
subsection 7b74  7#c7 ,accumulated      
deferred foreign income ,for purposes of
 this section-- 7,a7 ,in general ,the   
term accumulated deferred foreign income
 means the excess of-- 7i7 the          
undistributed earnings of the controlled
 foreign corporation1 over  7ii7 the    
undistributed ,u4,s4 earnings of such   
controlled foreign corporation4  7,b7   
,undistributed earnings ,the term       
undistributed earnings means the        
earnings and profits of the controlled  
foreign corporation described in section
 #iei7;c77#c71 determined-- 7i7 as of   
the close of the taxable year described 
in paragraph 7#a71  7ii7 without        
diminution by reason of distributions   
made during such taxable year1 and      
7iii7 without regard to this subsection4

  ,for purposes of this chapter1 any    
determination with respect to the       
treatment of distributions described in 
clause 7ii7 shall be made after the     
application of this subsection to the   
earnings and profits described in the   
matter preceding clause 7i74  7,c7      
,undistributed ,u4,s4 earnings ,the term
 undistributed ,u4,s4 earnings has the  
meaning given the term post-#aihf       
undistributed ,u4,s4 earnings in section
 #bde7;a77#e71 determined-- 7i7 as of   
the close of the taxable year described 
in paragraph 7#a71 and  7ii7 without    
regard to post-#aihf each place it      
appears in the matter before            
subparagraph 7,a74  7#d7 ,acquisition   
date ,for purposes of this section1 the 
term acquisition date means the date the
 covered entity completes the           
acquisition described in subsection     
7a77#b77;,b77i7 7after the application  
of paragraph 7#b77;,b77i7 of this       
subsection74  4  7b7 ,effective date    
,the amendments made by this section    

shall apply with respect to taxable     
years ending after ,september #ah1      
#bjad4