Bill · S. 467· Senate(119-S-467)
End Double Taxation of Successful Consumer Claims Act
- Introduced
- 2/6/2025
- Last activity
- 2/6/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Catherine Cortez Masto
- Cosponsors
- - 6 - 0
- Introduced
- In Committee
What this bill would do
This bill, titled the "End Double Taxation of Successful Consumer Claims Act," seeks to amend the Internal Revenue Code of 1986. It proposes to allow an above-the-line deduction for attorney fees and costs related to consumer claim awards. The bill specifically defines "consumer protection violation" through a wide range of federal and state laws. These violations include various acts related to credit, real estate, and consumer products. The changes would apply to attorney fees and court costs paid during taxable years following the act's enactment.
Yes· 3 of 6
Does this give people more protection from unfair business practices?+4
By making it easier to deduct legal costs, the bill potentially increases the net financial recovery for consumers facing unfair or deceptive business practices.
Would households on low incomes be better off under this?+3
The deduction helps individuals retain more of their settlement awards which often address financial harms like debt collection or credit issues.
Would middle-income households be better off under this?+3
The bill provides a tax deduction benefit for those pursuing consumer protection claims.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Above-the-line deduction for consumer claims: The bill allows for a deduction for attorney fees and costs in connection with awards from consumer protection violations (Section 2(a)). This could provide a financial benefit to individuals receiving awards for such violations.
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Broad definition of consumer protection violation: The bill defines a violation to include many different laws, such as the Truth in Lending Act, the Fair Credit Reporting Act, and the Fair Debt Collection Practices Act (Section 2(b)). This wide scope covers various consumer transactions and harms caused by sellers or providers of property, services, or money.
Potential Negative Impacts for People
- No specific negative impacts are mentioned in the provided text.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Low Income Households+3Good For Middle Class Households+3Good For Urban Residents+1
- Economy And Finance
- Improves Consumer Protection+4Reduces Middle Class Taxes+3
- Social Issues And Justice
- Improves Poverty Reduction+1
- 2/10/2025
- 1 Cosponsor added.
- 2/6/2025
- Read twice and referred to the Committee on Finance.
- 5 Cosponsors added.
- Introduced in Senate
Michael BennetDemocrat · Colorado
Cory BookerDemocrat · New Jersey
Timothy KaineDemocrat · Virginia
Patty MurrayDemocrat · Washington
Jeanne ShaheenDemocrat · New Hampshire
Peter WelchDemocrat · Vermont