End Congressional Stock Trading Act

Tax Relief During Divestment: Under Section 2(e)(1), the bill amends the Internal Revenue Code so that the nonrecognition of gain applies to the divestment of property required by this Act, provided the proceeds are used to purchase authorized assets within 60 days.

Allowable Financial Security: Section 2(c)(1) allows individuals to continue owning certain assets that do not present a conflict of interest, such as diversified widely held investment funds, U.S. Treasury bills, bonds, or interests in small business concerns.

Protection of Employment Income: Section 2(c)(1)(G) allows for the ownership of assets received as compensation from the primary occupation of a spouse, ensuring that professional earnings are not unfairly restricted.

Retirement Security: Section 2(c)(1)(E) allows for the continued ownership of investment funds held in Federal, State, or local government employee retirement plans.

Financial Penalties: Section 2(d) states that a Member of Congress, their spouse, or dependent child can be subject to a civil penalty of up to $100,000 for each violation of this Act.

Mandatory Divestment Timelines: Section 2(b) requires current members and their families to divest certain assets within 180 days, while new members must complete divestment within 90 days, which could create a burden of rapidly liquidating assets.

Restrictions on Complex Investments: Section 2(b)(1) prohibits the ownership of interests in hedge funds, venture capital funds, or other complex investment vehicles, though the bill allows for a longer 5-year divestment period for these specific assets.