hold on there's just too much going on in Congress lmao...
Creates tax credit for unlawfully collected tariffs, taxes businesses passing costs.
Introduced by Mr. Thompson of California.
Introduced in the House, referred to committee.
This bill establishes a tax credit for individuals to receive refunds from tariffs deemed unlawfully collected after January 20, 2025, and before the bill's enactment. It also imposes an excise tax on large businesses that receive such tariff refunds but demonstrably passed on most of these tariff costs to consumers. The bill was introduced by Mr. Thompson of California and has been referred to the House Committee on Ways and Means for review.
Introduced Feb 20, 2026
H.R. 7636 was introduced in the House of Representatives on February 20, 2026, and referred to the House Committee on Ways and Means. For it to become law, it must pass both the House and Senate, potentially with amendments, and then be signed by the President. There are no scheduled votes yet.
If this bill passes and a court rules that certain tariffs were unlawfully imposed after January 20, 2025, you might receive a tax credit based on your household size. This credit aims to return those unlawfully collected tariff revenues to consumers. Simultaneously, large businesses that were subject to those tariffs and passed on more than 50% of the cost to you through higher prices would face a 100% excise tax on their refund amount. The bill specifies that the Treasury would issue these payments to individuals 'as rapidly as possible' after a court order.
Supporters Say
Supporters might argue the bill ensures consumers are compensated for unlawful tariffs and discourages businesses from profiting from them.
Critics Say
Critics might contend that the excise tax on businesses is complex and could disincentivize future compliance or fair pricing practices.
Arguments in favor could highlight the principle of returning unlawfully collected funds to the public and holding corporations accountable for price increases during periods of tariffs. Conversely, opposition might focus on the administrative burden of the excise tax, the difficulty for businesses to prove they didn't pass on costs, and potential negative impacts on businesses that are simply responding to market forces.