[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4642 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4642
To amend the Internal Revenue Code of 1986 to impose an income tax on
excess profits of certain corporations.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 9, 2024
Mr. Sanders (for himself and Mr. Markey) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose an income tax on
excess profits of certain corporations.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Ending Corporate Greed Act''.
SEC. 2. TAX ON EXCESS BUSINESS PROFITS OF CERTAIN CORPORATIONS.
(a) In General.--Subchapter A of chapter 1 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new part:
``PART VIII--EXCESS BUSINESS PROFITS
``Sec. 59B. Tax on excess business profits of taxpayers with
substantial gross receipts.
``SEC. 59B. TAX ON EXCESS BUSINESS PROFITS OF TAXPAYERS WITH
SUBSTANTIAL GROSS RECEIPTS.
``(a) Imposition of Tax.--There is hereby imposed on each
applicable taxpayer for any taxable year a tax equal to 95 percent of
the excess profits for the taxable year. Such tax shall be in addition
to any other tax imposed by this subtitle.
``(b) Limitation.--The amount of tax imposed under subsection (a)
for any taxable year shall not exceed 75 percent of the modified
taxable income of the taxpayer for such taxable year.
``(c) Excess Profits.--For purposes of this section--
``(1) In general.--The term `excess profits' means, with
respect to any applicable taxpayer for any taxable year, the
excess of--
``(A) the modified taxable income of the taxpayer
for the taxable year, over
``(B) the average of the inflation adjusted
modified taxable income of the taxpayer for taxable
years beginning in 2015, 2016, 2017, 2018, and 2019.
``(2) Inflation adjusted modified taxable income.--
``(A) In general.--The term `inflation adjusted
modified taxable income' means, with respect to any
taxable year described in paragraph (1)(B), the
modified adjusted gross income for such taxable year
increased by an amount equal to--
``(i) such modified adjusted gross income,
multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year
described in paragraph (1)(A) begins,
calculated by using in section 1(f)(3)(A)(ii)
the CPI for the calendar year immediately
before the calendar year in which the taxable
year for which the increase under this
paragraph is determined in lieu of the CPI for
calendar year 2016.
``(B) Rounding.--Any increase determined under
subparagraph (A) shall be rounded to the nearest
multiple of $500.
``(d) Modified Taxable Income.--For purposes of this section, the
term `modified taxable income' means, with respect to any taxable year,
the taxable income of the taxpayer computed under this chapter for such
taxable year, determined with the following modifications:
``(1) Global intangible low-taxed income.--In determining
the amount of global intangible low-taxed income included in
income for the taxable year, the taxpayer's net deemed tangible
income return for the taxable year under section 951A(b)(1)(B)
shall be zero.
``(2) Deductions for fdii and gilti.--No deduction shall be
allowed under section 250.
``(3) Depreciation system.--In the case of tangible
property, the depreciation deduction allowable under section
167 shall be determined under the alternative depreciation
system of section 168(g).
``(4) Research and experimental expenses.--Section 174
shall be applied to amounts paid or incurred in any taxable
year beginning on or before December 31, 2021, in the same
manner as it is applied to amounts paid or incurred in taxable
years beginning after such date.
``(5) Deductions for employee remuneration.--
``(A) In general.--Section 162(m) shall be
applied--
``(i) by substituting `covered individual
(as defined in section 59B(d)(5)(B))' for
`covered employee' each place it appears in
paragraphs (1) and (4) thereof,
``(ii) by treating any reference to an
`employee' in paragraphs (1) and (4) thereof as
a reference to an `individual', and
``(iii) by substituting `was required to
file reports under section 15(d) of such Act
(15 U.S.C. 78o(d)) at any time during the 3-
taxable year period ending with the taxable
year' for `is required to file reports under
section 15(d) of such Act (15 U.S.C. 78o(d))'
in paragraph (2) thereof.
``(B) Covered individual.--For purposes of applying
this paragraph to section 162(m), the term `covered
individual' means any individual who performs services
(directly or indirectly) for the taxpayer (or any
predecessor) for any taxable year beginning after
December 31, 2023.
``(e) Applicable Taxpayer.--For purposes of this section--
``(1) In general.--The term `applicable taxpayer' means,
with respect to any taxable year, a taxpayer--
``(A) which is a corporation other than a regulated
investment company, a real estate investment trust, or
an S corporation, and
``(B) the average annual gross receipts of which
for the 3-taxable-year period ending with the preceding
taxable year are at least $500,000,000.
``(2) Gross receipts.--
``(A) Special rule for foreign persons.--In the
case of a foreign person the gross receipts of which
are taken into account for purposes of paragraph
(1)(B), only gross receipts which are taken into
account in determining income which is effectively
connected with the conduct of a trade or business
within the United States shall be taken into account.
In the case of a taxpayer which is a foreign person,
the preceding sentence shall not apply to the gross
receipts of any United States person which are
aggregated with the taxpayer's gross receipts by reason
of paragraph (3).
``(B) Other rules made applicable.--Rules similar
to the rules of section 448(c)(3) shall apply in
determining gross receipts for purposes of this
section.
``(3) Aggregation rules.--All persons treated as a single
employer under subsection (a) of section 52 shall be treated as
1 person for purposes of this subsection, except that in
applying section 1563 for purposes of section 52, the exception
for foreign corporations under section 1563(b)(2)(C) shall be
disregarded.
``(f) Termination.--This section shall not apply to any taxable
year beginning after December 31, 2026.''.
(b) Conforming Amendment.--The table of subchapters for subchapter
A of chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following new item:
``PART VIII--Excess Business Profits''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2023.
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