Bill would tax at 100% any payout from a presidential IRS lawsuit settlement

What does this do?

HR 9075 would impose a 100 percent tax on any money paid from a settlement fund created because the President of the United States filed a civil lawsuit against the IRS. Recipients of such payments could not deduct them from regular income taxes, leaving no way to offset the tax. The bill applies only to this one specific type of settlement and does not affect ordinary taxpayers or typical IRS disputes.

Who does it affect?

The bill would affect anyone who receives a payment from a settlement fund arising from a presidential civil lawsuit against the IRS. In practice, the number of people affected depends entirely on whether such a lawsuit ever occurs and produces a settlement.

Why does it matter?

Because the 100 percent tax rate would recapture every dollar paid out from such a settlement, no recipient would retain any of the money received. The deduction prohibition closes any additional avenue that might otherwise reduce the tax burden on those payments.

What does it cost, and who pays?

• 100% tax on settlement payments
• No deductions allowed on those payments

Where does it stand?