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Gov. Schwarzenegger Proposes 75% Tax on Punitive Damages

Paul Caron

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).

About the Author

Paul Caron Avatar
Paul Caron
Paul Caron was named Duane and Kelly Roberts Dean of Pepperdine University School of Law on June 1, 2017. Dean Caron joined the Pepperdine faculty in 2013 after serving as the Dorothy and Leonard Straus Distinguished Visiting Professor of Law in the spring semesters of 2010 through 2013. He served as Associate Dean for Research and Faculty Development at Pepperdine in 2015-2017. Before coming to Pepperdine, he was Associate Dean of Faculty and Charles Hartsock Professor of Law at the University of Cincinnati College of Law.
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2 responses to “Gov. Schwarzenegger Proposes 75% Tax on Punitive Damages”

  1. Dave Avatar
    Dave

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

  2. Tom Avatar
    Tom

    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”.