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Denying Expenditures for False Accusations with Malicious Effect (DEFAME) Act

12/7/2023, 5:06 PM

Summary of Bill S 2550

The DEFAME Act, also known as Bill 118 s 2550, is a piece of legislation currently being considered in the US Congress. The main purpose of this bill is to prevent individuals from making false accusations with malicious intent that could harm the reputation or livelihood of another person.

Under the DEFAME Act, individuals who are found to have made false accusations with malicious intent could face serious consequences. This could include being denied any financial support or expenditures related to their false accusations. The bill aims to hold individuals accountable for their actions and deter them from making false accusations in the future.

The DEFAME Act has garnered support from lawmakers who believe that false accusations can have a damaging impact on individuals and their families. By passing this legislation, Congress hopes to protect the integrity of individuals and prevent the spread of false information that could harm innocent people. Overall, the DEFAME Act is a proposed piece of legislation that seeks to address the issue of false accusations with malicious intent. If passed, this bill could have significant implications for individuals who engage in this harmful behavior.

Congressional Summary of S 2550

Denying Expenditures for False Accusations with Malicious Effect (DEFAME) Act

This bill denies certain large corporations (i.e., corporations with gross income exceeding $10 billion in the preceding taxable year) a tax deduction for certain payments relating to defamation law suits, including the applicable defamation suit payment, attorneys' fees, and insurance premiums. The bill defines applicable defamation suit payment as any payment that (1) is made in connection with a defamation suit for which proof of actual malice is required to succeed on the merits, (2) is paid pursuant to a settlement or court order, and (3) exceeds $500 million in the aggregate.

Current Status of Bill S 2550

Bill S 2550 is currently in the status of Bill Introduced since July 26, 2023. Bill S 2550 was introduced during Congress 118 and was introduced to the Senate on July 26, 2023.  Bill S 2550's most recent activity was Read twice and referred to the Committee on Finance. as of July 26, 2023

Bipartisan Support of Bill S 2550

Total Number of Sponsors
1
Democrat Sponsors
1
Republican Sponsors
0
Unaffiliated Sponsors
0
Total Number of Cosponsors
0
Democrat Cosponsors
0
Republican Cosponsors
0
Unaffiliated Cosponsors
0

Policy Area and Potential Impact of Bill S 2550

Primary Policy Focus

Taxation

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