H.R.2347 - Survivor Justice Tax Prevention Act (119th Congress)
Summary
H.R.2347, the Survivor Justice Tax Prevention Act, aims to amend the Internal Revenue Code of 1986 to exclude from gross income any damages, other than punitive damages, received on account of sexual acts or sexual contact. This exclusion would apply to judgments made and agreements entered into after the enactment of the Act.
The bill also includes provisions to limit substantiation requirements, specifically prohibiting the requirement of medical records to prove damages related to sexual acts or contact. Finally, it directs the Secretary of the Treasury to promote public awareness of this exclusion, in consultation with the Department of Justice Office on Violence Against Women.
Expected Effects
The primary effect of this bill would be to provide financial relief to survivors of sexual assault and abuse by exempting compensatory damages from federal income tax. This would allow survivors to retain a greater portion of the compensation awarded to them. It could also incentivize more survivors to pursue legal action, knowing that the financial burden of taxation will be lessened.
Potential Benefits
- Provides financial relief to survivors of sexual assault and abuse.
- Simplifies the process of receiving compensation by reducing substantiation requirements.
- Increases awareness of available resources and support for survivors.
- May encourage more survivors to seek justice through legal channels.
- Acknowledges the unique challenges faced by survivors of sexual violence.
Potential Disadvantages
- May create a loophole for individuals attempting to evade taxes through fraudulent claims.
- Could potentially increase the complexity of the tax code.
- May disproportionately benefit higher-income survivors who receive larger settlements.
- The cost of promoting public awareness of the exclusion may strain the Treasury's resources.
- The definition of 'sexual act' and 'sexual contact' relies on existing legal definitions, which may not be universally agreed upon or understood.
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution, as it seeks to provide support and relief to a vulnerable population. It does not appear to infringe upon any specific constitutional rights or protections. The power to levy and collect taxes, as well as to make exceptions and define taxable income, falls within the powers granted to Congress under Article I, Section 8 of the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).