Prevent Presidential Profiteering Act

Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter:

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.

For purposes of this section—

The term covered person means—

(A) any individual who has served as President of the United States,

(B) any member of the family of such individual, and

(C) any person controlled (based on principles similar to the principles which apply for purposes of section 52(b)) by one or more individuals described in subparagraph (A) or (B).

The term member of the family means, with respect to any individual described in paragraph (1)(A)—

(A) the spouse of such individual, and

(B) any individual who bears a relationship to such individual which is described in subparagraphs (A) through (G) of section 152(d)(2).

For purposes of this section—

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.

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 as President of the United States, and

(B) ending with the date on which such individual ceased to serve as President of the United States.

For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.

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.

Section 275(a)(6) of the Internal Revenue Code of 1986 is amended by inserting 50B, after 50A,.

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:

The amendments made by this section shall apply with respect to amounts received after the date of the enactment of this Act.