Survivor Justice Tax Prevention Act

Floor Speech

Mr. Speaker, I want to start out by thanking Chairman Smith and Ranking Member Neal for bringing this important bill to the floor for consideration during Sexual Assault Awareness Month.

As a survivor of sexual assault, I thank Mr. Smucker for teaming up with me to develop this important legislation that supports victims of sexual abuse who so often have no voice.

Mr. Speaker, at its core, this bill is about fairness, dignity, and justice for survivors.

I really don't have to go into detail about the problem that our Nation and, indeed, even this institution have with sexual abuse and assault.

Currently, settlement payments for sexual assault survivors are made on account of personal physical injuries or physical sickness, and they are excluded from gross Federal income and, therefore, not subject to taxation.

We all know that sexual abuse doesn't just cause physical harm. There is indelible mental harm that is caused by sexual assault. Yet, these survivors face challenges proving that sexual assault resulted in physical injuries because they don't have evidence of so-called ``observable bodily harm'' and have been denied the tax exemption.

Our bill, the Survivor Justice Tax Prevention Act, which I am, again, so proud to lead with Representative Lloyd Smucker, addresses this situation by allowing a tax exemption for all harms caused by sexual abuse.

Because the harm is real and lasting, even when it is not visible, we are working to ensure the survivors do not have to be retraumatized by proving so-called observable bodily harm or having to produce deeply personal records or to be abused on a settlement on which they have to pay taxes.

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Ms. MOORE of Wisconsin. Mr. Speaker, I have no further speakers, and I yield myself the balance of my time to close.

Mr. Speaker, I will start by acknowledging the very passionate words of my cosponsor, Mr. Smucker. I am so pleased that he took this on with such generosity and passion.

Mr. Speaker, we hear all the time about the high-profile civil cases involving sexual abuse. I am thinking about the accounts of trusted gymnast physicians abusing star athletes and the victims of Jeffrey Epstein and many of his associates. We even hear about sexual assault that occurs within our own body, and we have to address that problem.

Let's just take a moment to acknowledge that all sexual abuse does not make the headlines. Every time a survivor comes forward, it takes extraordinary courage in the face of personal risk, scrutiny, and cost.

The Survivor Justice Tax Prevention Act takes a belt-and-suspenders approach to ensure that settlement payments, whether arising from a court judgment, private arbitration or mediation, that are made on account of sexual abuse are not subject to taxation.

Mr. Speaker, I urge my colleagues in the House to support this effort to make the tax code better serve all survivors who receive settlements after prevailing against their abusers by not saddling them with a tax bill or having to fight the IRS.

We need to get this fix passed into law. I am so pleased to be standing here in this Chamber and asking for a vote by suspension of the rules. We need to pass this into law to ensure fair treatment of the tax law, dignity in the face of undue administrative burdens, and justice for survivors who prevail against their abusers.

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