Tax the Grift Act (H.R. 9075)

Summary

Creates a 100% tax on any money a person gets from a settlement fund that was set up because the President sued the Internal Revenue Service (IRS).

What problem does this solve?

A President could potentially sue the IRS to get a financial settlement for themselves or their allies, which could be an abuse of power. This bill removes any financial benefit from such a lawsuit by taxing the settlement money at a rate of 100%, making it worthless to the recipient.

What does this bill do?

Creates a 100% tax on specific settlement payments

Imposes a new tax equal to 100% of any payment a person receives from a settlement fund created after the President sues the Internal Revenue Service.

Defines 'qualified settlement fund payment'

Specifies that the tax applies to money from any fund set up because of a civil lawsuit filed by the President of the United States against the IRS.

Excludes settlement payments from gross income

States that while these settlement payments are taxed at 100%, they are not included in a person's regular gross income for other tax purposes.

Prevents tax deductions for this tax

Amends the tax code to ensure that the 100% tax paid on these settlements cannot be deducted from other income taxes.

Who does this affect?

The President of the United States
Recipients of specific government lawsuit settlements

What is the real world impact?

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Prevents presidential self-enrichment through lawsuits

Stops a President from using their power to sue the IRS and then personally benefit from a financial settlement. By taxing the settlement at 100%, it removes any monetary reason to file such a lawsuit.

When does this start?

The new tax will apply to any settlement money received after the bill becomes law.