[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4125 Placed on Calendar Senate (PCS)]

<DOC>





                                                       Calendar No. 360
119th CONGRESS
  2d Session
                                S. 4125

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 17, 2026

  Mr. Wyden (for himself, Mr. Schumer, Mr. Lujan, Mr. Welch, and Mr. 
  Whitehouse) introduced the following bill; which was read the first 
                                  time

                             March 18, 2026

            Read the second time and placed on the calendar

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to impose a tax on damages 
  received by certain officers 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 ``Stop Presidential Embezzlement 
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 RECEIVED BY CERTAIN OFFICERS 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 in a position 
                described in paragraph (2), and
                    ``(B) any person related (within the meaning of 
                section 267(b)) to a person described in subparagraph 
                (A).
            ``(2) Position described.--The positions described in this 
        paragraph are the following:
                    ``(A) President of the United States.
                    ``(B) Vice President of the United States.
                    ``(C) Any position at level I of the Executive 
                Schedule under section 5312 of title 5, United States 
                Code.
                    ``(D) Member of Congress (including any Delegate 
                and Resident Commissioner).
    ``(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 in a position described in subsection 
                (b)(2)(A), and
                    ``(B) ending with the date on which is one year 
                after the date on which such individual last served in 
                any position described in subsection (b)(2)(A).
    ``(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 Received by Certain Officers 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.
                                                       Calendar No. 360

119th CONGRESS

  2d Session

                                S. 4125

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             March 18, 2026

            Read the second time and placed on the calendar