Rep. Ken Buck, R-Colo., offered an amendment that would block tax subsidies for legal settlements concerning sexual assault or harassment under the Tax Cuts and Jobs Act, the name of the Republican tax reform effort.
He outlined the amendment specifically as a way to reign in Hollywood.
“America has been watching Hollywood for decades, but not watching closely enough,” Buck said in a statement Tuesday. “Behind the red carpets and glitzy premieres is a culture of deceit and depravity. As Congress rethinks our tax code, we need to rethink the way we treat Hollywood by eliminating the business expense deduction for hush money associated with sexual assault and sexual harassment cases.”
Buck’s press office noted that companies often write off settlements and legal fees as necessary business expenses. As a result, Buck’s office claims that when companies deduct settlements from their tax liability upon settling sexual harassment or assault cases in Hollywood, taxpayers “subsidize” the companies’ costs of “covering up the illegal behavior.”
Buck’s proposed amendment would cut business expensing for legal settlements, fines, fees, and legal expenses associated with sexual assault and harassment.
A series of sexual assault and harassment allegations have emerged since last month against Hollywood elites, starting with movie mogul Harvey Weinstein, who allegedly sexually abused women over the course of 40 years.