[Congressional Record Volume 172, Number 94 (Wednesday, June 3, 2026)]
[Senate]
[Page S2530]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 5464. Ms. CORTEZ MASTO (for herself and Mr. Wyden) submitted an 
amendment intended to be proposed by her to the bill S. 2, to provide 
for reconciliation pursuant to title II of S. Con. Res. 33; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ____. EXCISE TAX ON COVERED SETTLEMENT PAYMENTS.

       (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--COVERED SETTLEMENT PAYMENTS

``Sec. 5000E. Covered settlement payments.

     ``SEC. 5000E. COVERED SETTLEMENT PAYMENTS.

       ``(a) In General.--In the case of any covered individual, 
     there is imposed a tax equal to the amount of any covered 
     settlement payment received by such individual.
       ``(b) Payment of Tax.--The tax imposed by subsection (a) 
     shall be paid by the covered individual who received the 
     covered settlement payment.
       ``(c) Definitions.--In this section--
       ``(1) Covered fund.--The term `covered fund' means any 
     fund, trust, account, escrow, or similar arrangement the 
     assets of which are derived, in whole or substantial part, 
     from amounts paid by the United States in satisfaction, 
     compromise, or settlement of a civil action commenced by--
       ``(A) an individual who at any time held the office of 
     President, or
       ``(B) a corporate entity wholly or partially owned or 
     controlled by an individual described in subparagraph (A).
       ``(2) Covered individual.--The term `covered individual' 
     means any individual convicted of a serious violent felony 
     (as defined in section 3559(c)(2) of title 18, United States 
     Code) under any Federal, State, tribal, territorial, or 
     military law--
       ``(A) at any time prior to the last day of the taxable year 
     in which the covered settlement payment was received, and
       ``(B) without regard to whether the conviction has been 
     pardoned, expunged, vacated, or set aside.
       ``(3) Covered settlement payment.--The term `covered 
     settlement payment' means any distribution or payment which 
     is received (directly or indirectly) by an individual from a 
     covered fund.
       ``(d) No Deduction for Taxes Paid.--No deduction shall be 
     allowed under any provision of this title with respect to the 
     payment of the tax imposed under this section.
       ``(e) 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 individual for any taxable 
     year shall not include any covered settlement payment 
     received by such taxpayer during such taxable year.
       ``(f) Regulations and Guidance.--The Secretary shall issue 
     such regulations or other guidance as may be necessary or 
     appropriate to carry out the purposes of this section, 
     including any regulations or guidance which may be necessary 
     or appropriate to prevent avoidance of the tax imposed under 
     subsection (a) through nominees, intermediaries, assignments, 
     successor trusts, gifts, or similar arrangements.''.
       (b) 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--Covered Settlement Payments''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to any covered settlement payment received on or 
     after the date of enactment of this Act, without regard to 
     the date on which the covered fund from which the payment was 
     made was established.
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