Text of Senate Amendment 5464

On 2026-06-03, Senator Catherine Cortez Masto (D-NV) delivered a floor speech titled "Text Of Senate Amendment 5464" in the Senate.

Text of Senate Amendment 5464

Congressional Record, Volume 172 Issue 94 (Wednesday, June 3, 2026) [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. ______