Tax the Grift Act

Bill Number

H.R. 9075

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-05-29: Referred to the House Committee on Ways and Means.

Last Updated

2026-06-01T22:59:23Z

AI-Generated Summary

Purpose This bill amends the Internal Revenue Code to impose a tax on payments received from settlement funds created through civil lawsuits filed by the President against the Internal Revenue Service.

Key Provisions

• Creates a new Chapter 50B titled "Qualified Settlement Fund Payments."
• Imposes a tax equal to 100 percent of any amount received by a taxpayer from a fund established due to a civil action filed by the President against the IRS.
• Defines such payments as "qualified settlement fund payments."
• Treats the new tax as one imposed under Subtitle A for administrative purposes.
• Excludes these payments from gross income under Chapter 1.
• Amends Section 275(a)(6) to prevent deduction of the tax from income tax liability.
• Applies to amounts received after the date the bill becomes law.

Significant Changes to Existing Law

• Adds an entirely new chapter to Subtitle D of the tax code, creating a targeted 100 percent tax on specific settlement proceeds.
• Introduces an exclusion from gross income for these payments while simultaneously taxing them at the full amount.
• Updates the table of chapters in Subtitle D to include the new chapter.

Potential Impacts

• Recipients of such settlement payments would owe tax equal to the full amount received, effectively eliminating any net benefit.
• The IRS, as the defendant in the referenced lawsuits, could face altered dynamics in settlement negotiations.
• No direct effects on international relations are outlined.
• Government agencies involved in tax administration would treat the new tax under standard enforcement rules.

Main Stakeholders Affected

• Individuals or entities receiving payments from the described settlement funds.
• The President of the United States, as the party filing the civil actions.
• The Internal Revenue Service.
• Congress, through its role in enacting tax policy changes.

Notable Legal, Constitutional, or Political Implications

• The bill creates a highly specific tax applying only to settlements from presidential lawsuits against the IRS, which could raise questions about targeted taxation under existing constitutional standards for uniformity in taxation.
• The combination of a 100 percent tax rate and gross income exclusion represents a direct mechanism to neutralize financial outcomes from these particular civil actions.
• The short title "Tax the Grift Act" signals an intent to address perceived improper benefits, though the text itself focuses solely on the tax mechanics.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Pocan, Mark [D-WI-2]

Recent Actions

• 2026-05-29: Referred to the House Committee on Ways and Means.
• 2026-05-29: Introduced in House
• 2026-05-29: Introduced in House

Bill Versions

• Tax the Grift Act — issued 2026-05-29 — PDF (3 pages)