Truth in Merger Economics Act

Truth in Merger Economics Act - Amends the Internal Revenue Code to prohibit the filing of a consolidated return by a corporation that has been a member of an affiliated group for less than 36 months.

Requires the recognition of gain by a corporation on the distribution of property in liquidation of large corporations. Provides that distributions shall be treated as in liquidation of a large corporation if the liquidated corporation was a large corporation or controlled by a large corporation or if 50 percent of the distributed assets were acquired by a large corporation. Defines "large corporation" as a publicly traded corporation whose outstanding stock is worth $100,000,000 or more, or a private corporation whose net worth is $100,000,000 or more.

Increases the holding period requirement for stock for nonrecognition of gain in the case of certain distributions of appreciated property in redemption of stock. Disallows such nonrecognition in certain circumstances.