Muslim Brotherhood Terrorist Designation Act of 2025

House Bill

H.R. 4397

119th Congress

Muslim Brotherhood Terrorist Designation Act of 2025

In Committee

Introduced:Jul 15, 2025

Primary Sponsor

Mario Diaz-Balart

Representative

Republican

FL-26

Cosponsors

0

Quick Stats

Policy Area

Taxation

Summary

This bill would prevent companies or individuals from claiming a tax deduction for payments related to defamation cases where they have admitted to wrongdoing. In other words, if a person or business is found guilty of intentionally damaging someone's reputation, they would not be able to deduct the costs of that defamation settlement or the legal fees from their taxes.

Latest Action

Referred to the House Committee on Ways and Means.

SponsorMario Diaz-Balart (R-FL)

Introduced7/15/2025

StatusReferred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, for

ChamberHouse

Data from Congress.gov

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Vote Prediction

Muslim Brotherhood Terrorist Designation Act of 2025

This bill would prevent companies or individuals from claiming a tax deduction for payments related to defamation cases where they have admitted to wrongdoing. In other words, if a person or business is found guilty of intentionally damaging someone's reputati

Community Breakdown

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This bill would prevent companies or individuals from claiming a tax deduction for payments related to defamation cases where they have admitted to wrongdoing. In other words, if a person or business is found guilty of intentionally damaging someone's reputation, they would not be able to deduct the costs of that defamation settlement or the legal fees from their taxes.

Bill Number: 4397
Sponsor: Mario Diaz-Balart (R-FL)
Introduced: 7/15/2025
Status: Referred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, for
Policy Area: Taxation

Data from Congress.gov

AI-generated summary

Fact Sheet

Title: Muslim Brotherhood Terrorist Designation Act of 2025
Bill Number: 4397
Sponsor: Mario Diaz-Balart (R-FL)
Status: Referred to the Committee on Foreign Affairs, and in addition to the Committee on the Judiciary, for
Introduced: 7/15/2025
Summary: This bill would prevent companies or individuals from claiming a tax deduction for payments related to defamation cases where they have admitted to wrongdoing. In other words, if a person or business is found guilty of intentionally damaging someone's reputation, they would not be able to deduct the

Data from Congress.gov

AI Summary

Plain-English explanation of this bill

This bill would prevent companies or individuals from claiming a tax deduction for payments related to defamation cases where they have admitted to wrongdoing. In other words, if a person or business is found guilty of intentionally damaging someone's reputation, they would not be able to deduct the costs of that defamation settlement or the legal fees from their taxes.

Last updated: 12/30/2025

Official Summary

Congressional Research Service summary

No Taxpayer Bailout for Defamation Act This bill denies a tax deduction for any settlement or payment related to defamation (intentional damage to an individual's good reputation) if the taxpayer has admitted to guilt or culpability or for attorney's fees related to such settlement or payment.

Key Points

Main provisions of the bill

Companies or individuals cannot claim tax deductions for defamation settlements or legal fees if they have admitted guilt or culpability.
The bill aims to discourage defamation by removing the tax benefits of such payments.
This would apply to any settlement or payment related to intentionally harming an individual's reputation.

How This Impacts Americans

Potential effects on citizens and communities

This bill would primarily impact companies and individuals who have been found guilty of defamation. By removing the ability to deduct these costs from their taxes, it creates a financial disincentive for engaging in defamatory behavior. This could lead to fewer defamation cases overall, as well as increased accountability for those who do commit reputational harm.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

4397, 119th Congress (2025). "Muslim Brotherhood Terrorist Designation Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-4397