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Saturday, May 15, 2004

Gov. Schwarzenegger Proposes 75% Tax on Punitive Damages

Saturday, May 15, 2004

According to today's L.A. Times, Gov. Schwarzenegger has proposed a 75% tax on punitive damage awards to help close California's gaping budget deficit. Eight other states (Alaska, Georgia, Illinois, Indiana, Iowa, Missouri, Oregon and Utah) impose similar taxes. See discussion on That's News To Me (via Legal Theory Blog).

https://taxprof.typepad.com/taxprof_blog/2004/05/gov_schwarzeneg.html

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Comments

Sounds like a good way to reduce the "lawsuit lottery" while still retaining the punitive nature of the award. People shouldn't look upon the legal system as method to "get rich".

Posted by: Tom | Jun 5, 2004 7:37:57 AM

You got to be jokeing 75%! 10% sounds more fair.

Posted by: Dave | May 30, 2004 11:19:35 AM