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Restoring tax fairness for plaintiffs.

Publication: Trial
Publication Date: 01-OCT-03
Format: Online - approximately 803 words
Delivery: Immediate Online Access

Article Excerpt
For the past three Congresses, lawmakers on both sides of the aisle have recognized the need to address the implications of a seven-year-old law that imposed federal taxes on all punitive damages awards and on compensatory damages in specific cases. This is the flirt Congress, however, in which a bill to modify that law has made significant progress toward enactment.

The Small Business Job Protection Act of 1996 (Pub. L. No. 104-188) provided tax relief for small businesses. To compensate for the resulting revenue loss, the act also included miscellaneous provisions imposing new taxes, including one provision that penalizes plaintiffs.

Before the act was passed, a plaintiff who received a damages award arising from a personal injury...

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