Congress proposes 100% tax on President's own IRS settlement proceeds.
H.R. 9075 — Tax the Grift Act · Filed by Mark Pocan (D-WI) · Introduced May 29, 2026 · Referred to committee
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What it does
This bill imposes a 100% tax on any money a person receives from a settlement fund created by a lawsuit the President of the United States files against the IRS. The tax applies to the full amount received, but the settlement payment itself is excluded from the recipient's taxable income—meaning the person pays the 100% tax on money that is not counted as income. The bill takes effect immediately upon enactment.
Why we flagged it
The bill creates a novel 100% tax specifically targeting settlement payments from lawsuits filed by the sitting President against the IRS. This is not a general tax policy but a targeted mechanism that appears designed to either punish recipients of such settlements or to ensure that any proceeds from Presidential litigation against the IRS flow back to the federal government rather than to beneficiaries.
What the text implies
- The bill creates a perverse incentive: the President could file suits against the IRS knowing settlement proceeds will be entirely captured by the federal government, potentially encouraging frivolous or retaliatory litigation.
- The 100% tax rate is confiscatory and unprecedented in U.S. tax law; it effectively nullifies any settlement benefit to recipients, raising constitutional takings and due process questions not addressed in the bill.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. federal government (100% of settlement proceeds)