,,ii  #aahth ,,congress  #ast ,session  
,s4 #hjj  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,march #ad1         
#bjbc,mr4 ,blumenthal 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     
higher rate of tax on bonuses and       
profits from sales of stock received by 
executives employed by failing banks    
that were closed and for which the      
,federal ,deposit ,insurance            
,corporation has been appointed as      
conservator or receiver4  #a4 ,short    
title ,this ,act may be cited as the    
,deliver ,executive ,profits ,on ,seized
 ,institutions to ,taxpayers ,act or the
 ,,deposit ,act4  #b4 ,sense of the     
,senate ,it is the sense of the ,senate 
that the revenue raised from the tax    
imposed under subsection 7k7 of section 
#a of the ,internal ,revenue ,code of   
#aihf 7as added by section #c7 will be  
returned to the ,deposit ,insurance     

,fund 7as defined in section #c of the  
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahac774  #c4 ,higher rate of 
tax on bonuses and stock profits        
received by certain bank executives  7a7
 ,in general ,section #a of the         
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new subsection3  7k7 ,rate of 
tax on profits received by certain bank 
executives  7#a7 ,in general ,in the    
case of any applicable individual who   
receives any excluded profits during the
 taxable year1 the tax imposed by this  
section shall be equal to-- 7,a7 the tax
 which would be imposed by this section 
if the taxable income of such individual
 for the taxable year were reduced 7but 
not below zero7 by the amount of the    
excluded profits received by such       
individual during such taxable year1    
plus  7,b7 #ij percent of the excluded  
profits described in subclause 7,i7 of  
paragraph 7#b77;,b77i7 which were       
received by such individual during such 

taxable year1 plus  7,c7 #ajj percent of
 the excluded profits described in      
subclause 7,,ii7 of such paragraph which
 were received by such individual during
 such taxable year4  7#b7 ,definitions  
,for purposes of this subsection-- 7,a7 
,applicable individual ,the term        
applicable individual means any         
individual-- 7i7 who-- 7,i7 was employed
 by an insured depository institution   
for which the ,federal ,deposit         
,insurance ,corporation has been        
appointed conservator or receiver1 and  
7,,ii7 served as an executive officer   
for such institution prior to such      
conservatorship or receivership1 and    
7ii7 with respect to the taxable year in
 which the excluded profits were        
received1 whose adjusted gross income   
7reduced by the amount of such excluded 
profits7 for such taxable year was      
greater than #bej1jjj4  7,b7 ,excluded  
profits  7i7 ,in general ,the term      
excluded profits means1 with respect to 
any applicable individual for any       

taxable year-- 7,i7 any payment in the  
nature of a bonus which is paid-- 7aa7  
after ,march #a1 #bjbc1 and  7bb7 by any
 insured depository institution within  
the #fj-;day period prior to the date on
 which the ,federal ,deposit ,insurance 
,corporation was appointed conservator  
or receiver for such institution1 or    
7,,ii7 any profit made by such          
applicable individual from the sale of  
any security of the insured depository  
institution that employs such applicable
 individual1 if that sale occurs not    
more than #fj days before the date on   
which the ,federal ,deposit ,insurance  
,corporation is appointed conservator or
 receiver with respect to the insured   
depository institution4  7ii7           
,controlled groups  7,i7 ,in general    
,for purposes of clause 7i71 all persons
 treated as a single employer under     
subsection 7a7 or 7b7 of section #eb or 
under subsection 7m7 or 7o7 of section  
#dad shall be treated as one person4    
7,,ii7 ,inclusion of foreign            

corporations ,for purposes of subclause 
7,i71 in applying subsections 7a7 and   
7b7 of section #eb to this section1     
section #aefc shall be applied without  
regard to subsection 7b77#b77;,c7       
thereof4  7,c7 ,executive officer ,the  
term executive officer means1 with      
respect to any insured depository       
institution1 its president1 any vice    
president of such institution in charge 
of a principal business unit1 division  
or function 7such as sales1             
administration or finance71 any other   
officer who performs a policy making    
function or any other person who        
performs similar policy making functions
 for such institution4 ,executive       
officers of subsidiaries may be deemed  
executive officers of such institution  
if they perform such policy making      
functions for such institution4  7,d7   
,insured depository institution ,the    
term insured depository institution has 
the same meaning given such term under  
section #c of the ,federal ,deposit     

,insurance ,act 7#ab ,u4,s4,c4 #ahac74  
4  7b7 ,effective date ,the amendment   
made by this section shall apply to     
taxable years ending after the date of  
the enactment of this ,act4