(WNY News Now) In an effort to provide survivors of sexual assault and harassment with financial support as they pursue justice, new bipartisan legislation aims to eliminate their tax burden.
Washington, D.C.The Tax Fairness for Survivors Act, a bipartisan, bicameral bill introduced by U.S. Senators Kirsten Gillibrand and Marsha Blackburn, would eliminate the federal tax penalty on settlements, awards, and judgments made to survivors of sexual assault and sexual harassment.
Payments for damages resulting from emotional and physical harm in physical injury cases are currently free from taxes. However, unless the survivor can demonstrate that they suffered physical harm during the encounter, such as bruises or broken bones, payouts from sexual harassment and sexual assault lawsuits are taxed as income. In certain situations, this might lead to doubt about whether or not settlements from instances involving sexual assault or sexual harassment are taxed, which further worries survivors.
Senator Gillibrand stated that it is intolerable to make victims of sexual assault and harassment pay taxes on the damages they are entitled to.Commonsense legislation known as the Tax Fairness for Survivors Act will remove this tax burden, freeing survivors to concentrate on their post-trauma healing. I’m honored to present this legislation, and I’ll keep up the battle to guarantee that victims of sexual assault and harassment receive the respect and dignity they are due.
Senator Blackburn said that survivors of sexual assault and sexual harassment shouldn’t have to pay taxes on the compensation they get as a result of the crime.These brave survivors wouldn’t have to pay unfair financial penalties thanks to the Tax Fairness for Survivors Act.
The Tax Fairness for Survivors Act was introduced by Gillibrand and Blackburn after it was introduced in the House of Representatives in August by Reps. Claudia Tenney (R-NY-24) and Lois Frankel (D-FL-22). The National Alliance to End Sexual Violence and Lift Our Voices has endorsed the bill.
Representative Frankel stated that survivors of sexual harassment and assault should be treated fairly under the law.A woman who has been raped, who has experienced severe pain and anguish, or who had to leave her employment to avoid harassment should not have to pay additional taxes on the compensation she is entitled to. With relation to their compensation, this bill guarantees survivors equitable treatment.
Assault survivors have already gone through the unthinkable; they shouldn’t have to pay taxes on money they received as a settlement for their legal battle. Congresswoman Tenney stated, “This commonsense bill aligns the tax treatment of these settlements with physical injury settlements, ensures survivors are not further penalized, and closes an unfair loophole in our tax code by exempting settlements and judgments from income taxes from sexual harassment or assault claims.”
The bill’s complete text is available here.