H.R. 7381 — Prevent Presidential Profiteering Act

This section establishes a new tax under IRC chapter 50B at a rate of 100% on qualified civil action amounts received after enactment by covered persons—defined as any former President of the United States, such individual's spouse or family members (i.e., those bearing a relationship described in IRC §152(d)(2)(A)-(G)), or entities controlled by them (based on IRC §52(b) principles). Qualified civil action amounts are damages (by settlement, verdict, judgment, or otherwise) received from any civil action filed by such a person against the United States (or agency/instrumentality thereof) where the filing, settlement, verdict, or judgment occurred during the former President's term of service. (Thus, such amounts are excluded from gross income under IRC chapter 1 but are nondeductible under amended IRC §275(a)(6) and subject to administrative provisions of IRC subtitle F.) The section also makes a conforming clerical amendment to the table of chapters for IRC subtitle D.