Tax on litigation?
Joe
litigation awards. Aside from the predictable opposition from the legal
industry, what downsides might such a tax have? It seems to have many
advantages, and would take some of the burden off other sources, like income
taxes in a time of increasing unemployment, and sales taxes at a time when
we need economic recovery. We are facing huge govt. costs now with the
airlines, rebuilding and securing structures, etc., and being able to tax a
percentage of, say, the 5 billion dollars taken by Fla and Texas lawyers in
the tobacco litigation seems like a good and timely idea. Any thoughts?
Thanks,
Joe
Bob Kamman
and Texas lawyers in the tobacco litigation seems like a good and timely idea.
<<
The amount received for legal fees is taxable. Most damage awards are taxable.
The exceptions are those for personal injuries. If one of your family members
loses a leg in a car accident, and receives $30,000 for it (because that's the
limit of the other guy's insurance), are you going to be the first to volunteer
$10,000 or so of it going back to the government, in taxes?
Paul A. Thomas
> I think the time has come to seriously consider
> establishing a tax on litigation awards.
Amounts won in a court battle, or out of court settlement are currently
taxable, with an exception for personal injuries (ie: you actually get
hurt).
> Aside from the predictable opposition from the legal
> industry, what downsides might such a tax have?
Obviously the current law isn't being opposed, so maybe there isn't any
downside.
> It seems to have many advantages, and would take
> some of the burden off other sources,
Are maybe talking about an additional tax on court awards? Kind of like a
surtax?
> like income taxes in a time of increasing unemployment,
Dude....if you become unemployed, chances are your income will be lower, and
as a result, your taxes would be lower too. In actual dollar amounts as
well as percentages.
> and sales taxes at a time when we need economic recovery.
Do you somehow think that the recipient of a legal settlement doesn't spen
their money?
> We are facing huge govt. costs now with the airlines,
Well, actually the airlines should be flipping the bill for their cost
cutting measures that allowed lax security.
> rebuilding and securing structures, etc., and being able
> to tax a percentage of, say, the 5 billion dollars taken
> by Fla and Texas lawyers in the tobacco litigation seems
> like a good and timely idea.
Their legal fees are all taxable. Is there some reason you think it wasn't?
> Any thoughts?
Yeah, you don't have a clue what you are talking about.
--
Paul A. Thomas, CPA
Athens, Georgia
tax...@negia.net
http://www.pat-cpa.com
Joe
corporate tax liability, as I realize that most income is taxable. When my
wife and daughter were killed in a car accident, I became aware of much of
what you refer to. I was thinking of a new tax or fee imposed, especially
on awards that seem quite excessive. I was being unclear.
And thanks for the unkind, rude put-down. I guess I deserved it, huh?
Joe
"Paul A. Thomas" <tax...@negia.net> wrote in message
news:tvaj60c...@corp.supernews.com...
Bob Kamman
corporate tax liability, as I realize that most income is taxable. When my
wife and daughter were killed in a car accident, I became aware of much of
what you refer to. I was thinking of a new tax or fee imposed, especially
on awards that seem quite excessive. <<
I'm Bob, and I'm wondering whom you would propose to make the "quite excessive"
determination:
1) Special military tribunals, meeting in secret.
2) The same jury that came up with the award in the first place.
3) The judge, who already has the authority to reduce the award if it's
excessive.
S. L. Richardson
have attained and go to work.
"Paul A. Thomas" <tax...@negia.net> wrote in message
news:tvaj60c...@corp.supernews.com...
S. L. Richardson
award wasn't enough.
Quit your bellyaching. You may hate lawyers, you may not. But this
*sounds* like someone who's got a beef with a lawyer/legal system, not a
citizen who's concerned about our collective financial well-being.
"Joe" <joec...@hotmail.com> wrote in message
news:qWdJ7.41559$lV4.5...@e420r-atl1.usenetserver.com...
TCP
: Amen....I mean, good grief....at some point, quit bitching about what others
: have attained and go to work.
Some of us work two jobs so that others can attain more. Is this a great
country or what?
TCP
: I think the time has come to seriously consider establishing a tax on
<singing>
Litigate, litigate,
sue to the music...
S. L. Richardson
something...get another job, and quit your bitching. quit trying to take
something of someone else's. you're worse than the lawyer's he's
complaining about. you're never going to pull yourself up by trying to pull
someone else down.
"TCP" <t...@shell.pacifier.com> wrote in message
news:3bf5d...@news.nwlink.com...
S. L. Richardson
what i have attained.
"TCP" <t...@shell.pacifier.com> wrote in message
news:3bf5d...@news.nwlink.com...
TCP
Actually, it often does. When people like you go into NIMBY mode and
successfully lobby against the creation of additional housing which might
be affordable to McWorkers with one job, your property values are
increased, and wealth is redistributed to you from McWorkers who now must
work two jobs to pay the higher rents which follow. In other words, the
McWorker becomes worse off precisely because people like you have used
government to increase their property values. While the proximate goal
may be to keep McWorkers out of your neighborhood (rather than increase
your property values), the McWorkers cannot avoid the resulting
redistribution.
S. L. Richardson <blac...@worldnet.att.net> wrote:
: The fact that you work at McDonald's and Taco Bell has *nothing* to do with
: what i have attained.
:>
TCP
Sheesh, it was intended ONLY as a joke...I don't litigate and I don't
support efforts of others to get an undeserved windfall in court.
As a middle-aged McWorker, I don't see much I can do to pull myself up
anyway. (Employer demand for career-changing McWorkers is extremely
close to zero, and by definition, McWorkers typically don't have the
cash necessary to succeed in self-employment.)
S. L. Richardson <blac...@worldnet.att.net> wrote:
: there's always someone, somewhere who doesn't want to work for
:>
:>
:>
S. L. Richardson
"Used govt. to increase OUR property values?" No wonder you are a
McWorker...you don't know what the hell you're talking about.
Put down your crack pipe. Work harder. Quit bitching.
"TCP" <t...@shell.pacifier.com> wrote in message
news:3bf6c...@news.nwlink.com...
S. L. Richardson
"TCP" <t...@shell.pacifier.com> wrote in message
news:3bf6c...@news.nwlink.com...
TCP
: "Used govt. to increase OUR property values?" No wonder you are a
: McWorker...you don't know what the hell you're talking about.
: Put down your crack pipe. Work harder. Quit bitching.
Are you familiar with Thomas Sowell? He has been formally trained in
economics and holds a PhD in that field. He is also a brilliant
conservative who has written numerous books. I refer you to his (1981)
Minorities and Markets. Sowell demonstrates there that the middle class
uses government to increase middle class property values and redistribute
income from the poor to the middle class. Certainly, Sowell knows more
about economics than either you or I - should he put down his crack pipe
too?
I already work harder than most Americans - have you ever had a McJob?
Do you think flipping hamburgers and cleaning 40-pound oven grills soaked
overnight in acid is fun and easy?
If you're too lazy to find and read Sowell on your own, I can post some
of his brilliant insight on this.
TCP
I never wanted to be a ditchdigger. So how do I pull myself up at my age?
: "TCP" <t...@shell.pacifier.com> wrote in message
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