Congressman Taylor Co-Sponsors STOP Act
Washington, D.C. - Today, Congressman Scott Taylor joined Representative Ken Buck (CO-04) and Reps. Dave Brat (VA-07), Brian Fitzpatrick (PA-08), Tom Garrett (VA-05), Jody Hice (GA-10), Mike Johnson (LA-04), and Steve Pearce (NM-02) to introduce H.R. 4495, the Settlement Tax Deductions are Over for Predators Act (STOP Act), legislation to prohibit the deductibility of legal settlements related to sexual assault and sexual harassment as business expenses.
“When we allow companies to deduct sexual assault and sexual harassment related settlements, we’re asking the American taxpayer to subsidize hush money payments that cover-up sexual misconduct,” Congressman Ken Buck stated.
“Our tax code should make it harder, not easier, for sexual misconduct to occur in the workplace,” said Congressman Scott Taylor. “Currently, the tax code allows companies to deduct sexual assault and harassment settlements. As with lawmakers using our tax dollars for settlements, this is outrageous. These should have never been burdens the taxpayer bears.”
Currently, companies can deduct as ordinary and necessary business expenses any legal settlements, fines, fees, and expenses related to sexual assault and sexual harassment cases. In allowing businesses to write off these expenses, the American taxpayer is effectively subsidizing the cost of resolving legal issues related to sexual misconduct. The STOP Act would prohibit deduction of these expenses in cases where the allegations are public or in cases involving a non-disclosure agreement.
S.1, the Tax Cuts and Jobs Act, which is being considered by the U.S. Senate today, includes similar language. The legislation offered by Buck and the original co-sponsors shows support in the House of Representatives for the inclusion of this language in a final tax bill package.