Higher taxes on bonuses and stock profits for failing bank executives.
This bill imposes extremely high tax rates (90% or 100%) on bonuses and profits from stock sales received by executive officers of banks that failed and were taken over by the Federal Deposit Insurance Corporation (FDIC). The goal is to recover these funds and return them to the Deposit Insurance Fund, thereby protecting taxpayers and depositors. These rules apply only to executives with income over $250,000 who received these funds shortly before the bank's failure.
Key points
Tax on Bonuses: Executives of failed banks will face a 90% tax rate on bonuses received within 60 days prior to the bank's takeover by the FDIC.
Tax on Stock Profits: Profits made by executives from selling bank stock within 60 days before the FDIC takeover will be taxed at a 100% rate.
Purpose: Revenue generated from these taxes is intended to be returned to the Deposit Insurance Fund, which safeguards citizens' deposits.
Who is affected: The provisions apply only to executive officers (presidents, vice presidents, policymakers) of failed banks whose adjusted gross income exceeds $250,000.
Expired
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