Several Democratic-led states are proposing a 100% tax on any payouts from the nearly $1.8 billion fund created in the settlement to prevent people who stormed the Capitol or committed other wrongdoing from receiving money. Lawmakers framed the tax as a state-level response to the fund's creation and the lack of required disclosure about how payments would be distributed. The proposals add a new layer of political and legal pressure alongside ongoing federal scrutiny and court challenges to the fund.
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