The federal tax penalty on settlements, awards, and judgments paid to survivors of sexual harassment and sexual assault would be removed under bipartisan legislation introduced on Dec. 17 by U.S. Sen. Marsha Blackburn (R-TN).
The Tax Fairness for Survivors Act, S. 5566, which Sen. Blackburn cosponsored alongside bill sponsor U.S. Sen. Kirsten Gillibrand (D-NY), would remove the current practice of taxing payments from sexual harassment and sexual assault lawsuits as income.
“Survivors of sexual assault and sexual harassment should not be forced to pay taxes on compensation they receive as a result of the crime,” Sen. Blackburn said. “The Tax Fairness for Survivors Act would ensure these courageous survivors do not have to bear the cost of unjust financial penalties.”
S. 5566 is the companion bill to the same-named H.R. 9254, which U.S. Reps. Lois Frankel (D-FL) and Claudia Tenney (R-NY) introduced in August.
The bill is endorsed by the National Alliance to End Sexual Violence and Lift Our Voices.
“It is unacceptable to force survivors of sexual assault and harassment to pay taxes on the compensation they rightfully deserve,” said Sen. Gillibrand. “The Tax Fairness for Survivors Act is common-sense legislation that will eliminate this tax burden, allowing survivors to focus on healing in the wake of their trauma.”