The Heritage Foundation posted an article on its website yesterday entitled “Punitive Damages and the Tax Code: Punishing Business and the Economy.” The article criticizes the Obama administration’s proposal to prevent taxpayers from deducting payments of punitive damages awards.
Meanwhile, Professor Lawrence Zelenak of Duke Law has published an article on In Brief: the Online Magazine of the Virginia Law Review entitled “Of Punitive Damages, Tax Deductions and Tax-Aware Juries: A Response to Polsky and Markel.” As the title suggests, the article is a critical response to the proposal by Professors Dan Markel and Gregg Polsky that plaintiffs’ lawyers should be permitted to inform juries about the deductibility of punitive damages, so that juries can increase their punitive damages awards to offset any possible tax benefits.
Related posts:
More from Prof. Markel on Tax Policy and Punitive Damages
Proposed Legislation Would Eliminate Tax Deduction for Punitive Damages
Obama Administration Proposes To Eliminate Tax Deduction for Payment of Punitive Damages