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119-s-5448119th CongressWALLET

Anti-Corruption Tax (ACT) Act

Sponsored By: Senator Blumenthal, Richard [D-CT]

Introduced

Summary

100% windfall tax on income from discretionary federal favors to top officials and their families. The bill creates a new Section 59B that taxes income tied to favorable federal actions for a defined set of people and their closely linked entities.

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  • Covered officials and families: Individuals who served as President, Vice President, or in a Level I Executive Schedule post would owe a 100% tax on any income attributable to a covered favorable government action. Spouses who were married during the action and children as defined in the tax code are also treated as covered individuals.
  • Businesses and ownership links: Income or benefits that flow to entities that are beneficially owned by a covered individual are treated as public office windfall income. The bill references the beneficial ownership standard found in 31 C.F.R. 1010.230.
  • Which federal actions trigger the tax and timing: The tax targets a wide range of discretionary federal actions, including bank charters, licenses and franchises, permits, leases, federal contracts, waivers or exemptions, federal financial assistance, and merger approvals. The rules apply to taxable years ending after January 20, 2025.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

New 100% windfall tax for officials

If enacted, the bill would create a new 100% tax on "public office windfall" income. You would pay 100% of taxable income tied to a discretionary federal action that is expected to give a substantial economic benefit. The tax would apply to people who served as President, Vice President, or Level I Executive Schedule officials. It would also apply to spouses who were married during the action and to qualifying children. Covered actions include things like federal banking or payments licenses, federal leases, federal contracts, discretionary grants or loans, waivers or exemptions, and approvals of mergers or changes in control. Beneficial ownership would be determined under 31 C.F.R. §1010.230 as of enactment. The rule would apply to taxable years ending after January 20, 2025, and would be in addition to other taxes.

Sponsors & CoSponsors

Sponsor

Blumenthal, Richard [D-CT]

CT • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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