Bill > S574

This bill, called the Ending the Monopoly of Power Over Workplace Harassment through Education and Reporting Act - Part 2 (or the EMPOWER Act - Part 2), amends the Internal Revenue Code to modify the tax treatment of amounts related to employment discrimination and harassment in the workplace, including sexual harassment, sexual assault, and harassment based on protected categories. The key provisions are: 1. Denial of tax deduction: The bill prohibits a tax deduction for amounts paid or incurred by the taxpayer pursuant to any judgment or award in litigation related to workplace harassment, including expenses and attorney's fees in connection with the litigation, or for insurance covering the defense or liability of the underlying claims. 2. Exclusion from income: The bill excludes from gross income any amounts received in connection with a judgment, award, or settlement related to workplace harassment, including sexual harassment or other unlawful discrimination. 3. Limitation on tax based on income averaging: The bill allows for income averaging to limit the tax imposed on compensation received on account of certain unlawful employment discrimination, such as backpay or foregone compensation. The bill aims to modify the tax treatment of expenses and payments related to workplace harassment and employment discrimination to discourage such behavior and provide relief to victims.

Budget and Finance

https://www.congress.gov/bill/116th-congress/senate-bill/574/all-info