Rep. Mike Thompson (D-CA) is taking a strong stance against what he sees as abuse of power for personal gain.
In response to President Donald Trump’s $10 billion lawsuit against the Internal Revenue Service, Thompson has introduced the Prevent Presidential Profiteering Act, a bill that would impose a 100 percent tax on any settlement or judgment paid to a sitting president who sues the federal government.
“President Trump continues to use the Office of the Presidency for personal gain, including by suing the federal government to line his own pockets. That’s unacceptable,” Thompson said in a press release.
“That is why I am introducing legislation that ensures if a sitting president sues our government while in office, they get taxed 100 percent on any money paid to them through a trial or settlement.”
Trump Lawsuit Sparks Ethical Concerns
According to the Associated Press, Trump filed the lawsuit in federal court in Florida, accusing the IRS of causing reputational and financial harm after the 2020 leak of his confidential tax records.
The lawsuit also includes his sons Donald Jr. and Eric Trump as plaintiffs.
The leaked records revealed Trump paid only $750 in federal income taxes the year he first entered the White House, and no income tax at all in several prior years, according to The New York Times.
While Trump’s legal claim is based on a real violation, leaking tax information is illegal under IRS Code 6103.
Experts have questioned the size of the lawsuit and the implications of a sitting president suing the very government he runs.
Amy Hanauer, executive director at the Institute on Taxation and Economic Policy, warned, “Even if an unbiased judge rightly rejects Trump’s demands as preposterous, there is a great danger that the IRS would ‘agree’ to settle and pay out an enormous sum of taxpayer dollars to Trump.”
Legal experts also said Trump could have a hard time proving damages.
“It’s hard for me to believe that he really had any losses, but maybe,” said David Gair, a tax attorney who represents others affected by the same leak.
Trump told reporters that if he wins, he might donate the money to charity.
“I think what we’ll do is do something for charity. We could make it a substantial amount. Nobody would care because it’s going to go to numerous very good charities,” he said. No specific organizations were named.
What Thompson’s Bill Would Do
Thompson’s legislation would amend the Internal Revenue Code to apply a 100 percent tax on any civil settlement or judgment awarded to a sitting president or their immediate family, if the lawsuit was filed during their time in office.
“The President holds immense responsibility and influence. It is unacceptable for a president to use that position to financially benefit from the very government they were elected to lead,” Thompson said.
A short video clip shared on X by Thompson showed him addressing the issue:
“This latest escapade of him suing the IRS for $10 billion is outrageously wrong. That’s why I’ve introduced legislation that would prohibit any president who sues the federal government from being able to realize any profit or gain.”
Public Backlash and Thompson’s Response
Thompson’s post on X received pushback from some commenters, particularly from Trump supporters, who accused him of hypocrisy.
Some people pointed out the rising net worth of members of Congress and asked why Thompson hadn’t spoken out about that.
Thompson responded directly: “I don’t trade or own stocks because public service should never be about personal profit. The American people need to know their representatives are working for them, not corporate interests. That’s why I signed the petition to force a vote to ban stock trading by members of Congress.”
Efforts to ban stock trading in Congress have been ongoing, with support from lawmakers across party lines.
However, progress has been limited. Meanwhile, Trump’s lawsuit continues to raise concerns about potential conflicts of interest and the ethics of a sitting president seeking massive compensation from the federal government.
Rep. also weighed in, highlighting the scale of Trump’s lawsuit compared to the IRS’s resources.
“The IRS runs on about $12 billion a year. Donald Trump is suing it for $10 billion, nearly the agency’s entire budget. He’s trying to drain a public institution to settle a personal grievance,” Levin said.
Thompson’s bill has not yet been voted on, but it has added fuel to the broader debate over public accountability, presidential power, and the limits of personal enrichment while in office.