Bill would impose 100% tax on settlement payouts tied to presidential lawsuits against U.S.

What does this do?

HR 8910 would create a 100 percent tax on payments received from settlement funds created as a result of a lawsuit filed against the U.S. government by a current or former president, their close family members, or a company those individuals control. The tax equals the full amount received, effectively eliminating any payout. A separate 50 percent penalty can be added on top of the tax for anyone who willfully avoids paying it.

Who does it affect?

The bill would affect any person or organization that receives money from a settlement or court verdict in a case where a president, their spouse, close relatives, or a business they control sued the federal government. Ordinary Americans with no connection to a president or their family would not be affected.

Why does it matter?

Because the tax equals 100 percent of the amount received, no recipient would retain any portion of a qualifying settlement payment. The bill also creates public disclosure of who received payments and how much, with reporting deadlines and financial penalties for fund managers who fail to comply.

What does it cost, and who pays?

• $10,000 fine per missing IRS report
• 50% penalty for willful nonpayment
• January 31 notice deadline for recipients

Where does it stand?