Want to keep settled sexual harassment claims confidential? It may cost you tax dollars.

Morning on Capitol HillLast week, I wrote here about proposed legislation in the Commonwealth of Pennsylvania that would outlaw confidential settlements of sexual harassment claims.

Now, the feds are getting into the act.

The topic of sexual harassment has been front and center on Capitol Hill. Earlier this month, the Senate voted to require sexual-harassment training for staffers and senators. Senate contender Roy Moore has been showered in scrutiny. And, most recently, Senator Al Franken was accused of sexual harassment. The latest word is that he will not resign.

Meanwhile, on Friday, Julia Carpenter at CNN Money wrote here about an amendment to the Senate tax bill that would deny any corporate tax deduction for settlements subject to a nondisclosure agreement paid in connection with sexual harassment or sexual abuse.

Currently, subject to certain exceptions, a corporate taxpayer generally is allowed a deduction for ordinary and necessary expenses paid or incurred in carrying on any trade or business. However, certain exceptions apply, which include settlement of discrimination claims. Under the new proposal, no deduction would be allowed for any settlement, payout, or attorney fees related to sexual harassment or sexual abuse if such payments are subject to a nondisclosure agreement.

Senator Bob Menendez (NJ-D), whose own future is unclear, proposed the amendment. Ms. Carpenter reports that Colorado Republican Representative Ken Buck had proposed a similar amendment to the House tax bill.

With sexual harassment dominating the headlines, don’t be surprised if a new tax bill includes bipartisan support for something along the lines of what Ms. Carpenter has reported.

What do you think? Email me or let me know in the comments down below.


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