,,ii  #aafth ,,congress  #ast ,session  
,s4 #bbfh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #be1     
#bjai,mr4 ,reed 7for himself1 ,mr4      
,blumenthal1 ,mr4 ,whitehouse1 ,mr4     
,merkley1 ,ms4 ,baldwin1 ,ms4 ,warren1  
,mr4 ,van ,hollen1 and ,mr4 ,brown7     
introduced the following bill2 which was
 read twice and referred to the         
,committee on ,finance  ,a ,,bill  ,to  
amend the ,internal ,revenue ,code of   
#aihf to expand the denial of deduction 
for certain excessive remuneration1 and 
for other purposes4  #a4 ,short title   
,this ,act may be cited as the ,stop    
,subsidizing ,multimillion ,dollar      
,corporate ,bonuses ,act4  #b4          
,expansion of denial of deduction for   
certain excessive remuneration  7a7 ,in 
general  7#a7 ,expansion ,section       
#afb7m7 of the ,internal ,revenue ,code 
of #aihf is amended-- 7,a7 by striking  
applicable employee remuneration each   
place it appears in paragraphs 7#a71    
7#d71 and 7#e77;,e7 and inserting       

applicable remuneration2  7,b7 by       
striking covered employee each place it 
appears in paragraphs 7#a7 and 7#d7 and 
inserting covered individual2 and  7,c7 
by striking employee each place it      
appears in paragraph 7#a7 and           
subparagraphs 7,a71 7,c77ii71 and 7,e7  
of paragraph 7#d7 and inserting         
individual4  7#b7 ,covered individual   
,paragraph 7#c7 of section #afb7m7 of   
such ,code is amended to read as        
follows3  7#c7 ,covered individual ,for 
purposes of this subsection1 the term   
covered individual means--  7,a7 any    
individual who performs services        
7directly or indirectly7 for the        
taxpayer 7or any predecessor7 for any   
taxable year beginning after ,december  
#ca1 #bjai1 or  7,b7 any employee-- 7i7 
who was the principal executive officer 
or principal financial officer of the   
taxpayer 7or any predecessor7 at any    
time during any preceding taxable year  
beginning after ,december #ca1 #bjaf1   
and before ,january #a1 #bjbj1 or who   

was an individual acting in such a      
capacity1 or  7ii7 the total            
compensation of whom for any taxable    
year described in clause 7i7 was        
required to be reported to shareholders 
under the ,securities ,exchange ,act of 
#aicd by reason of such individual being
 among the #c highest compensated       
officers for the taxable year 7other    
than any individual described in clause 
7i774  ,such term shall include any     
employee who would be described in      
subparagraph 7,b77ii7 if the reporting  
described in such subparagraph were     
required as so described4  4  7#c7      
,conforming amendments  7,a7 ,the       
heading for section #afb7m7 of the      
,internal ,revenue ,code of #aihf is    
amended by striking employee4  7,b7 ,the
 heading for section #afb7m77#d7 is     
amended by striking employee4  7b7      
,modification of definition of publicly 
held corporation ,section #afb7m77#b7 of
 the ,internal ,revenue ,code of #aihf  
is amended-- 7#a7 by inserting 1 with   

respect to any taxable year1 after      
means2 and  7#b7 by striking            
subparagraph 7,b7 and inserting the     
following3  7,b7 that was required to   
file reports under section #ae7;d7 of   
such ,act 7#ae ,u4,s4,c4 #gho7d77 at any
 time during the #c-taxable year period 
ending with such taxable year4  4  7c7  
,regulatory authority  7#a7 ,in general 
,section #afb7m7 of the ,internal       
,revenue ,code of #aihf is amended by   
adding at the end the following new     
paragraph3  7#g7 ,regulations ,the      
,secretary may prescribe such guidance1 
rules1 or regulations as are necessary  
to carry out the purposes of this       
subsection1 including regulations--     
7,a7 with respect to reporting1 and     
7,b7 to prevent avoidance of the        
purposes of this section by providing   
compensation through a pass-through or  
other entity4  4  7#b7 ,conforming      
amendment ,paragraph 7#f7 of section    
#afb7m7 of such ,code is amended by     
striking subparagraph 7,h74  7d7        

,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after ,december #ca1    
#bjai4