,,ii  #aagth ,,congress  #ast ,session  
,s4 #bfhj  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #i1    
#bjba,ms4 ,warren 7for herself1 ,mr4    
,king1 ,mr4 ,merkley1 ,mr4 ,markey1 and 
,mr4 ,whitehouse7 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 impose a tax 
on real profits of certain corporations4
  #a4 ,short title ,this ,act may be    
cited as the ,real ,corporate ,profits  
,tax ,act of #bjba4  #b4 ,imposition of 
additional tax on real corporate profits
  7a7 ,imposition of tax  7#a7 ,in      
general ,subtitle ,a of the ,internal   
,revenue ,code of #aihf is amended by   
adding at the end the following new     
chapter3  #d;,a ,tax on corporate book  
income  ,sec4 #adgf4 ,tax on book       
income4 ,sec4 #adgg4 ,credit for income 
taxes paid4  #adgf4 ,tax on book income 
7a7 ,in general ,in addition to any     
other tax1 in the case of a corporation1

 there is imposed a tax for each taxable
 year on so much of the adjusted net    
book income of the corporation as       
exceeds #ajj1jjj1jjj4  7b7 ,amount of   
tax ,the amount of tax imposed under    
subsection 7a7 shall be #g percent4  7c7
 ,adjusted net book income ,for purposes
 of this section-- 7#a7 ,in general ,the
 term adjusted net book income means the
 net income or loss of the taxpayer set 
forth on the taxpayer's applicable      
financial statement as required to be   
reported 7or as would have been properly
 reported if the taxpayer were so       
required7 on the taxpayer's financial   
statement net income or loss            
reconciliation for the fiscal year      
ending with or within such taxable year1
 determined without regard to the tax   
imposed by this section and adjusted as 
provided in this subsection4  7#b7      
,group of entities ,for purposes of this
 subsection-- 7,a7 if the financial     
results of a taxpayer are reported on   
the applicable financial statement for a

 group of entities1 such statement shall
 be treated as the applicable financial 
statement of the taxpayer1 and  7,b7 if 
the taxpayer files a consolidated return
 for any taxable year1 adjusted net book
 income for such taxable year shall take
 into account items on the taxpayer's   
applicable financial statement which are
 properly allocable to members of such  
group included on such return4  7#c7    
,applicable financial statement ,for    
purposes of this subsection1 the term   
applicable financial statement has the  
meaning given such term under section   
#dea7;b77#c74  7d7 ,exception           
,subsection 7a7 shall not apply to a    
corporation subject to the tax imposed  
under subchapter ,m 7relating to        
regulated investment companies and real 
estate investment trusts74  7e7         
,application to foreign corporations ,in
 the case of a foreign corporation1 the 
tax imposed by subsection 7a7 shall     
apply only to those items on the        
taxpayer's applicable financial         

statement as are properly allocable to  
the income of the taxpayer which is     
effectively connected with the conduct  
of a trade or business within the       
,united ,states 7as determined under    
rules similar to the rules in section   
#hhb74  7f7 ,regulations ,the ,secretary
 shall prescribe such regulations and   
guidance as necessary to carry out the  
purposes of this section1 including     
regulations and guidance related to the 
application of this section to          
consolidated financial statements4      
#adgg4 ,credit for income taxes paid    
7a7 ,in general ,in the case of a       
taxpayer other than an ,s corporation1  
there shall be allowed a credit against 
the tax imposed by section #adgf for any
 taxable year an amount equal to #cc    
percent of so much of the taxpayer's net
 regular tax liability for the taxable  
year as exceeds the product of-- 7#a7   
the highest rate of tax specified in    
section #aa1 and  7#b7 the dollar amount
 described in section #adgf7;a74  7b7   

,net regular tax liability ,for purposes
 of this section1 the term net regular  
tax liability means the regular tax     
liability imposed under chapter #a      
reduced by the sum of the credits       
allowable under subparts ,a1 ,b and ,d  
of part ,,iv of subchapter ,a of chapter
 #a4  4  7#b7 ,clerical amendment ,the  
table of chapter for the ,internal      
,revenue ,code of #aihf is amended to   
read as follows3  ,chapter #d;,a--,tax  
on corporate book income  4  7b7 ,denial
 of income tax deduction ,section       
#bge7;a77#a7 of the ,internal ,revenue  
,code of #aihf is amended by striking   
and at the end of paragraph 7#b71 by    
striking the period at the end of       
paragraph 7#c7 and inserting 2 and1 and 
by adding at the end the following new  
paragraph3  7#d7 the tax imposed by     
chapter #d;,a4  4  7c7 ,effective date  
,the amendments made by this section    
shall apply to taxable years beginning  
after the date of the enactment of this 
,act4