Here's an idea: Why not tax those huge punitive damage awards that juries hand out like candy to greedy trial lawyers? Doesn't that sound like a great way to add to the state's coffers without really adding to anyone's overall tax burden? Well, California gave it a shot in 2004 at the behest of Governor Schwarzeneggar. They hoped to raise as much as $450 million for the budget. How did it turn out? Not quite as expected. Dwight explains it all to you.
Posted by Charles Kuffner on November 03, 2006 to Legal matters | TrackBackThis might make a lot of sense if punitive damages were a lot more common - it would be a free tax for the state to collect and it would come from "bad people," almost by definition. But, Dwight is right to point out this won't work in our space-time dimension.
Posted by: Jim D on November 3, 2006 9:01 AM