Rep. Frankel Introduces Bipartisan Bill to Remove Tax Penalty on Payments to Survivors of Sexual Violence

Rep. Frankel Introduces Bipartisan Bill to Remove Tax Penalty on Payments to Survivors of Sexual Violence

Washington, DC - Representatives Lois Frankel (D-FL-22) and Claudia Tenney (R-NY-24) have introduced the Tax Fairness for Survivors Act, a bipartisan bill designed to remove the tax penalty on settlements, awards, and judgments paid to survivors of sexual harassment and assault. Current law exempts payments for damages due to physical and emotional injuries from physical injury cases from taxation. However, payments from sexual harassment and assault lawsuits are taxed as income unless the survivor can prove additional physical harm. This means that if a rape survivor does not show visible physical injuries like bruises or broken bones, their settlements are taxed. This tax applies even if the survivor misses work, leaves their job, or seeks mental health support.

"Survivors of sexual harassment and assault deserve fair treatment under the law," said Rep. Frankel. "It is unacceptable for a woman who has been raped, who endures immense pain and trauma, or who had to quit her job to escape harassment, to face further tax burdens on the compensation she rightfully deserves. This bill ensures survivors receive equal treatment regarding their payments."

"Currently, loopholes in our tax system fail survivors of sexual harassment and assault, penalizing survivors," said Rep. Tenney. "The Tax Fairness for Survivors Act provides a common-sense solution that would eliminate the tax penalty on survivors by creating parity and exempting settlements and judgments from sexual harassment or assault claims from any income taxes. Thank you to Representative Frankel for joining me in these efforts to support survivors."

"As survivors of sexual misconduct in the workplace at Fox News, we know better than anyone that any award received upon settlement is not just for suffering through some of the most toxic workplace behavior imaginable, but also for income lost when one's job is terminated for doing nothing wrong except courageously coming forward to say something is wrong," said Gretchen Carlson and Julie Roginsky, Co-Founders, Lift Our Voices. "Awards should never be treated as part of regular income, since it is certainly not part of anyone's regular job responsibility to be sexually harassed or assaulted."

For full text of the bill, click here.

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