S. 4125: Stop Presidential Embezzlement Act

This bill, titled the Stop Presidential Embezzlement Act, proposes changes to the U.S. tax laws, specifically the Internal Revenue Code. The key components of the bill are as follows:

Tax on Damages Received

The bill introduces a tax equal to 100 percent on any civil damages that certain high-ranking officials of the U.S. government receive in lawsuits against the United States. This tax specifically targets:

• The President of the United States
• The Vice President of the United States
• Members of Congress, which include Senators and Representatives

Definition of Qualified Civil Action Amount

A qualified civil action amount is defined as the total sum of damages received by these covered individuals in a taxable year as a result of civil actions taken against the U.S. This includes amounts received through settlements, judgments, or verdicts. The civil actions must be:

• Filed by the individual against the United States or its agencies
• Filed or settled during the timeline that begins when the individual took office and ends one year after they leave the office

Exclusions from Income Tax

Any damages received that are subject to this new tax will not count towards the gross income for income tax purposes for the individuals involved. This means that while these individuals will be taxed on the damages received, they will not count this income when calculating other taxation activities.

Additional Provisions

The bill includes provisions that prevent individuals from deducting the amounts received as damages from their income tax calculations. It includes a clerical amendment to the tax code to reflect the addition of this new chapter specifically dealing with the taxation of civil damages received by high-ranking officials.

Effective Date

The provisions outlined in this bill will apply to amounts received after the bill is enacted.

Relevant Companies

None found.