,,ii  #aafth ,,congress  #ast ,session  
,s4 #bead  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,september #ai1
 #bjai,mr4 ,booker 7for himself and ,mr4
 ,casey7 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 ensure that workers and        
communities that are responsible for    
record corporate profits benefit from   
the wealth that those workers and       
communities help to create1 and for     
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,worker        
,dividend ,act of #bjai4  #b4 ,failure  
of employer to pay worker dividends  7a7
 ,in general ,subtitle ,d of the        
,internal ,revenue ,code of #aihf is    
amended by inserting after chapter #cf  
the following new chapter3  #cg         
,provisions relating to worker dividends
  ,sec4 #deja4 ,failure of employer to  
pay worker dividends4  #deja4 ,failure  
of employer to pay worker dividends  7a7

 ,general rule ,if1 for a taxable year  
in which a covered employer repurchases 
any securities of the employer on the   
open market1 the covered employer fails 
to pay to its employees a worker        
dividend meeting the requirements of    
subsection 7b71 then there is hereby    
imposed on the covered employer a tax   
equal to the lesser of the amounts      
determined under subparagraphs 7,a7 and 
7,b7 of subsection 7b77#a74  7b7 ,worker
 dividend ,for purposes of this         
section-- 7#a7 ,in general ,the term    
worker dividend means a payment made by 
a covered employer to employees of the  
employer at locations in the ,united    
,states1 if the total of all such       
payments made during the taxable year is
 not less than the lesser of--  7,a7 the
 amount paid by the employer to         
repurchase securities of the employer on
 the open market during the taxable     
year1 and  7,b7 #ej percent of the      
amount by which the earnings before     
interest1 taxes1 depreciation1 and      

amortization of the employer during the 
taxable year in the ,united ,states     
exceed #bej1jjj1jjj4  7#b7 ,payments to 
be in addition to compensation ,such    
term shall not include any payment      
unless such payment is in addition to1  
and 7including by election of the       
employee7 is not included in 7except as 
provided in paragraph 7#e77 or          
substituted for1 any cash or other      
compensation ordinarily paid to the     
employee by the employer4  7#c7         
,payments to be equal ,such term shall  
not include any payment unless the      
amount of the payment made to each      
employee of the employer in the ,united 
,states is of an equal amount4          
,notwithstanding the preceding sentence1
 in the case of an employee employed at 
less than full time1 the payment to such
 employee may be in a pro rata amount   
based on the hours worked by the        
employee per week4  7#d7 ,timing of     
payment ,such term shall not include any
 payment which is not made within #fj   

days of the close of the taxable year to
 which it relates4  7#e7 ,option to     
increase compensation ,a covered        
employer may1 by providing such         
documentation as the ,secretary may     
require1 elect to have the worker       
dividend paid to employees in the form  
of an increase in regular compensation4 
,in the case of a covered employer      
making such election--  7,a7 paragraph  
7#d7 shall not apply1 and  7,b7 the term
 worker dividend includes only increases
 in compensation which are so documented
 and which are paid within #a calendar  
year of the date the increase goes into 
effect4  7c7 ,covered employer ,for     
purposes of this section1 the term      
covered employer means1 for any taxable 
year1 any entity the stock of which is  
publicly traded4  7d7 ,aggregation rule 
,all persons treated as a single        
employer under subsection 7a7 or 7b7 of 
section #eb shall be treated as a single
 employer for purposes of determining   
whether an individual is an employee of 

a covered employer4  7e7 ,regulations   
,the ,secretary1 in consultation with   
the ,secretary of ,labor1 shall         
promulgate regulations or other guidance
 to ensure compliance with this section1
 including the determination of         
full-time status and rules to prevent   
avoidance of the purposes of subsection 
7b77#b74  7f7 ,reporting ,with respect  
to any taxable year in which a covered  
employer repurchases any securities of  
the employer on the open market1 not    
later than the due date for the return  
of tax for such taxable year such       
employer shall report to the ,secretary 
and the ,chairman of the ,securities and
 ,exchange ,commission1 in such manner  
as the ,secretary shall determine1 the  
amount of any worker dividend paid      
during such taxable year and any other  
information as the ,secretary shall     
require4  4  7b7 ,clerical amendment    
,the table of chapters for subtitle ,d  
of the ,internal ,revenue ,code of #aihf
 is amended by inserting after the item 

relating to chapter #cf the following   
new item3  ,chapter #cg--,provisions    
relating to worker dividends  4  7c7    
,effective date ,the amendments made by 
this section shall apply to repurchases 
of employer securities in taxable years 
beginning after the date of the         
enactment of this ,act4