S. 3817: Stop Presidential Embezzlement Act
This bill, known as the "Stop Presidential Embezzlement Act," aims to amend the Internal Revenue Code to impose a specific tax on damages received by certain high-ranking U.S. officials in civil actions against the government. Here’s a breakdown of its main provisions:
Imposition of Tax
The bill introduces a tax equal to **100% of the qualified civil action amount** received by designated officials in any tax year. This means if a covered person receives any money as a result of a lawsuit they filed against the United States, they would have to pay taxes on the entire amount received.
Covered Persons
The term **"covered person"** refers to individuals who have served in certain high-level positions, specifically:
- President of the United States
- Vice President of the United States
- Positions at level I of the Executive Schedule
- Members of Congress, including Delegates and Resident Commissioners
Qualified Civil Action Amount
The **qualified civil action amount** is defined as the total damages received by a covered person during a taxable year related to:
- A civil action filed by them against the United States or any of its agencies.
This includes amounts received from settlements, verdicts, or judgments, provided the legal proceedings were initiated during their tenure in the specified roles.
Special Rules
Several special rules are introduced under this tax provision:
- Any tax incurred under this new section will be treated as a tax under subtitle A of the Internal Revenue Code.
- Amounts received as damages will **not** be included in the recipient's gross income for tax purposes.
No Deduction from Income Tax
The bill also states that no deductions will be allowed under the Internal Revenue Code for the amounts subject to this new tax.
Effective Date
The provisions of this bill would apply to amounts received after the bill is enacted, meaning any damages awarded from civil actions that result in payments following the bill’s passage will be subject to this taxation rule.
Relevant Companies
None found.
This is an AI-generated summary of the bill text. There may be mistakes.
Sponsors
5 bill sponsors
Actions
2 actions
| Date | Action |
|---|---|
| Feb. 10, 2026 | Introduced in Senate |
| Feb. 10, 2026 | Read twice and referred to the Committee on Finance. |
Corporate Lobbying
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Potentially Relevant Congressional Stock Trades
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