Congress·In Committee·S. 3817

Taxes on Lawsuit Payouts for High-Ranking Officials

A bill to amend the Internal Revenue Code of 1986 to impose a tax on damages received by certain officers of the United States on account of any civil action filed against the United States, and for other purposes.

Also known as: Stop Presidential Embezzlement Act

about 1 month ago·View on Congress.gov

Part of: Congress Moves to Tax 100% of Lawsuit Wins Against U.S. by Top Leaders

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Key Points

This bill, introduced by Senator Wyden, would create a new 100% tax on money won in lawsuits against the federal government by top officials. This includes the President, Vice President, Cabinet members, and Members of Congress.
The tax applies to any money received from settlements or court judgments while these individuals are in office. It also covers their close family members to prevent people from using relatives to collect the money instead.
The goal is to prevent high-ranking leaders from personally profiting by suing the very government they lead. By taxing the winnings at 100%, the official would essentially have to give all the money back to the Treasury.
If passed, this rule would apply to any payments received after the bill becomes law. It ensures that public service is not used as a way to win large financial payouts from taxpayers through legal battles.