A bill to amend the Internal Revenue Code of 1954 to impose a 50 percent nondeductible tax on certain profits realized in connection with corporate takeover attempts, and for other purposes.

Summary

Amends the Internal Revenue Code to impose a 50 percent excise tax on any "greenmail profits" paid to certain corporate stockholders. Defines "greenmail profits" as any gain realized by a four-percent shareholder of any stock in a corporation if: (1) the shareholder held such stock for a period of less than two years; and (2) during the two-year period ending on the date of the sale or exchange of such stock there was a public tender offer for such stock or a four-percent shareholder submitted a written proposal for a public tender offer. Disallows an income tax deduction for certain interest paid or accrued with respect to hostile acquisition indebtedness. Defines "hostile acquisition indebtedness" as certain subordinate obligations issued after February 18, 1985, in connection with a hostile acquisition.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 20 February 1985

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

2. 20 February 1985

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 1 March 1985

   Committee

   Committee on Finance requested executive comment from OMB, Treasury Department.

   Source: Committee

4. 22 April 1985

   Committee

   Subcommittee on Taxation and Debt Management. Hearings held. Hearings printed: S.Hrg. 99-274.

   Source: Committee

Votes

No vote records are attached yet.

Versions

No version snapshots stored. Document URLs remain at the source.

Documents

1 official file

• Introduced in Senate

  summary · EN · 20 February 1985

  Open at official source

Sponsors

• Sen. Boren, David L. [D-OK] · D · Sponsor
• Sen. Nickles, Don [R-OK] · R · Sponsor
• Sen. Pryor, David H. [D-AR] · D · Cosponsor
• Sen. Bumpers, Dale [D-AR] · D · Cosponsor
• Sen. Metzenbaum, Howard M. [D-OH] · D · Cosponsor
• Sen. Dixon, Alan J. [D-IL] · D · Cosponsor
• Sen. Kassebaum, Nancy Landon [R-KS] · R · Cosponsor
• Sen. Domenici, Pete V. [R-NM] · R · Cosponsor
• · ssfi00 · Standing

Related records

• related to → A bill to amend the Internal Revenue Code of 1954 to impose a 50 percent nondeductible excise tax on certain profits realized in connection with corporate takeover attempts, and for other purposes.