NO PROFIT Act
- Sponsor
- Rep. Salinas, Andrea [D-OR-6]
- Committees
- Ways and Means Committee (primary)
- Last action
- Jun 29, 2026
Bottom line
This bill seeks to eliminate personal financial profit from capital gains for sitting U.S. Presidents, unless assets are managed through a qualified blind trust, by taxing such gains at 100%.
What it actually does
This bill amends the Internal Revenue Code of 1986 to impose a 100% tax on net capital gains accrued by a taxpayer while serving as President of the United States, unless those assets are held in a qualified blind trust. It also introduces a 'mark to market' rule, requiring annual recognition of gain or loss on non-qualified capital assets held by the President.
Proponents argue
Proponents would argue this bill enhances public trust and prevents potential conflicts of interest by removing the financial incentive for a President to make policy decisions that could personally enrich them through capital gains. It aims to ensure that the President's focus remains solely on public service, free from the appearance or reality of self-dealing.
Opponents contend
Opponents might argue that this bill could discourage qualified individuals with significant capital assets from seeking the presidency, as it imposes a unique and punitive tax burden not faced by other public servants or private citizens. They might also raise concerns about the practicalities of implementing a 100% tax and its potential impact on investment decisions made by a President's financial advisors, even within a blind trust context.
The bill is concise and its core provisions are understandable with a careful reading, making it accessible for evaluation within a short timeframe.
Section 2(a), amending Section 1(k)(1) of the Internal Revenue Code of 1986.
100% Tax on Presidential Net Capital Gain
This provision establishes a new rule in the tax code that subjects any 'qualified net capital gain' earned by a taxpayer during any portion of their service as President of the United States to a 100% tax rate. It explicitly states that this gain will not be subject to additional tax under other sections of the code, preventing double taxation.
Supporters argue
Supporters contend this provision is crucial for eliminating financial conflicts of interest and enhancing public trust in the presidency. By removing any personal profit motive from capital gains, it ensures that presidential decisions are made solely for the public good.
Critics contend
Critics might argue that a 100% tax is an extreme measure that could deter highly qualified individuals with substantial assets from running for office, thereby limiting the pool of potential presidential candidates. They may also question the fairness of singling out one officeholder for such a unique tax burden.
Tradeoffs
The provision balances the goal of preventing conflicts of interest and promoting public trust against concerns about potentially discouraging wealthy individuals from seeking the presidency and the perceived fairness of a 100% tax rate.
Section 2(a), amending Section 1(k)(2) of the Internal Revenue Code of 1986.
Annual Valuation and Recognition of Gain/Loss
This rule requires any capital asset (other than those in a qualified blind trust) held by the President at the end of an applicable taxable year to be treated as if it were sold at its fair market value on the last business day of that year. Any resulting gain or loss is recognized for that taxable year, with proper adjustments made for future actual sales to avoid double counting.
Section 2(a), amending Section 1(k)(3) of the Internal Revenue Code of 1986.
Definitions for Taxable Capital Gains
This section defines 'qualified net capital gain' as the excess of gains over losses from the sale or exchange of capital assets *other than* 'qualified capital assets' during an applicable taxable year. A 'qualified capital asset' is defined as any capital asset held *only* in a qualified blind trust (as defined in 5 U.S.C. 13104(f)(3)) throughout the President's service. An 'applicable taxable year' is any taxable year during which the individual served as President.
Defines a 'qualified capital asset' by referencing the definition of a 'qualified blind trust' found in 5 U.S.C. 13104(f)(3). This external reference dictates which assets are exempt from the new 100% capital gains tax and mark-to-market rules.
Section 2(a), amending Section 1(k)(3)(B) of the Internal Revenue Code of 1986.
Why it matters:This is standard legislative practice to avoid redundancy and ensure consistency with existing federal ethics laws regarding blind trusts for public officials. It is not necessarily evasive.
Case for: Proponents would argue that referencing an existing, well-established definition for 'qualified blind trust' ensures consistency across federal ethics regulations and leverages existing legal frameworks, avoiding the need to create a new, potentially conflicting definition.
Case against: Critics might contend that requiring cross-referencing to an entirely different title of the U.S. Code increases the complexity for taxpayers and their advisors, making the bill less transparent and harder to understand without specialized legal research.
Estimated impact: This definition is central to determining the scope of the 100% capital gains tax, directly impacting the financial planning and asset management strategies of any sitting President.