H.R. 7381: Prevent Presidential Profiteering Act

The Prevent Presidential Profiteering Act proposes to introduce a tax on the damages that any former or current President of the United States receives from civil actions against the United States. Here are the main components of the bill:

Imposition of Tax

The bill aims to impose a tax equal to 100 percent of the total damages received by the President in any civil action filed against the United States. This means that if a President wins damages from a lawsuit against the government, they would be taxed on the full amount of those damages.

Definition of Covered Person

The bill defines a "covered person" as:

• Any individual who has served as President of the United States.
• Any close family members of the President, including spouses and others who fall under widely recognized definitions of family members.
• Any entities controlled by the aforementioned individuals.

Qualified Civil Action Amount

The "qualified civil action amount" refers to the total damages received by a covered person during a taxable year in connection with civil actions filed against the United States. This includes damages resolved by settlement, court verdict, or judgment, provided these actions were formally initiated by the President or their family members.

Applicable Period

The applicable period for the damages is defined as the time when the individual began serving as President until they ceased holding that office.

Exclusion from Gross Income

For tax purposes, the act specifies that any qualified civil action amount received by a covered person will not be included in their gross income for that taxable year. This means that, while damages received will be subject to a 100% tax under this bill, these amounts will not be counted as part of taxable income.

Administrative Provisions

Any tax charged under this legislation will be treated as a standard income tax, and there will also be a clerical adjustment to existing tax codes to include this new tax provision.

Effective Date

The provisions of this bill would apply to amounts received after the date the Act is enacted.

Relevant Companies

None found.