Stop Presidential Embezzlement Act

New 100% tax on officials' lawsuit awards

This bill would create a new tax on certain federal officials and close relatives. A "covered person" would include the President, Vice President, Level I Executive Schedule officials, and Members of Congress. It would also include persons related to those officials as defined in section 267(b). For any taxable year, a covered person would owe a tax equal to 100 percent of the "qualified civil action amount" they received that year. The "qualified civil action amount" would mean damages from a civil action the person filed against the United States or its agencies, by settlement, verdict, judgment, or otherwise. Those qualifying damages would not be included in chapter 1 gross income, but the tax would be treated administratively as a subtitle A tax. The bill would also amend section 275(a)(6) to disallow related deductions for amounts tied to this rule. The rule would apply only to amounts received after the date of enactment.