Prevent Presidential Profiteering Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7381 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 7381

 To amend the Internal Revenue Code of 1986 to impose a tax on damages 
received by the President of the United States on account of any civil 
    action filed against the United States, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 2026

  Mr. Thompson of California (for himself, Mr. Doggett, Mr. Larson of 
Connecticut, Mr. Davis of Illinois, Ms. Chu, Ms. DelBene, Ms. Moore of 
   Wisconsin, Mr. Boyle of Pennsylvania, Mr. Panetta, Mr. Gomez, Mr. 
 Horsford, Ms. Sanchez, Mr. Evans of Pennsylvania, and Mr. Schneider) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to impose a tax on damages 
received by the President of the United States on account of any civil 
    action filed against the United States, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Prevent Presidential Profiteering 
Act''.

SEC. 2. IMPOSITION OF TAX ON DAMAGES RECEIVED BY THE PRESIDENT OF THE 
              UNITED STATES ON ACCOUNT OF CIVIL ACTION FILED AGAINST 
              THE UNITED STATES.

    (a) In General.--Subtitle D of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new chapter:

  ``CHAPTER 50B--CERTAIN CIVIL DAMAGES OF THE PRESIDENT OF THE UNITED 
                                 STATES

``Sec. 5000E. Imposition of tax on damages received on account of civil 
                            action filed against the United States.

``SEC. 5000E. IMPOSITION OF TAX ON DAMAGES RECEIVED ON ACCOUNT OF CIVIL 
              ACTION FILED AGAINST THE UNITED STATES.

    ``(a) In General.--There is hereby imposed on each covered person 
for any taxable year a tax equal to 100 percent of the qualified civil 
action amount received by such person during such taxable year.
    ``(b) Covered Person.--For purposes of this section--
            ``(1) In general.--The term `covered person' means--
                    ``(A) any individual who has served as President of 
                the United States,
                    ``(B) any member of the family of such individual, 
                and
                    ``(C) any person controlled (based on principles 
                similar to the principles which apply for purposes of 
                section 52(b)) by one or more individuals described in 
                subparagraph (A) or (B).
            ``(2) Member of the family.--The term `member of the 
        family' means, with respect to any individual described in 
        paragraph (1)(A)--
                    ``(A) the spouse of such individual, and
                    ``(B) any individual who bears a relationship to 
                such individual which is described in subparagraphs (A) 
                through (G) of section 152(d)(2).
    ``(c) Qualified Civil Action Amount.--For purposes of this 
section--
            ``(1) In general.--The term `qualified civil action amount' 
        means, with respect to any covered person during any taxable 
        year, the aggregate amount of damages received by such person 
        during such taxable year (whether by settlement, verdict, 
        judgment, or otherwise) on account of any civil action--
                    ``(A) filed by such person against the United 
                States (or any agency or instrumentality thereof), and
                    ``(B) with respect to which the filing or 
                settlement of, or issuance of a verdict or judgment 
                for, occurred during the applicable period.
            ``(2) Applicable period.--The term `applicable period' 
        means, with respect to any covered person, the period of time--
                    ``(A) beginning with the date on which the 
                individual described in subsection (b)(1)(A) began 
                serving as President of the United States, and
                    ``(B) ending with the date on which such individual 
                ceased to serve as President of the United States.
    ``(d) Special Rules.--
            ``(1) Administrative provisions.--For purposes of subtitle 
        F, any tax imposed by this section shall be treated as a tax 
        imposed by subtitle A.
            ``(2) Exclusion from gross income.--For purposes of chapter 
        1, the gross income of any covered person for any taxable year 
        shall not include any qualified civil action amount received by 
        such person during such taxable year.''.
    (b) No Deduction From Income Tax.--Section 275(a)(6) of the 
Internal Revenue Code of 1986 is amended by inserting ``50B,'' after 
``50A,''.
    (c) Clerical Amendment.--The table of chapters for subtitle D of 
the Internal Revenue Code of 1986 is amended by inserting after the 
item relating to chapter 50A the following new item:

  ``Chapter 50B--Certain Civil Damages of the President of the United 
                               States''.

    (d) Effective Date.--The amendments made by this section shall 
apply with respect to amounts received after the date of the enactment 
of this Act.
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