New Jersey
Civil Justice Institute

  • Helpful Links
  • Contact Us
  • HOME
  • ABOUT US
    • Our Mission
    • Membership
    • Our Staff
  • ISSUES & ADVOCACY
  • OUR WORK IN THE COURTS
  • NEWSROOM
  • GET INVOLVED

Fairness. Justice.
Rule of Law.

Taxation via Litigation Bill is Bad for Business

June 23, 2015News, Press Releases, Top StoriesBusiness Climate, Damages, Legal Reform, New Jersey LegislatureNJCJI

StopTheTaxationViaLitigationBillThis morning Senate Budget and Appropriations Committee is holding a hearing on a bill that would raise taxes on companies and individuals that have been ordered to pay punitive damages.

 

“There’s a reason no other states have a tax like this – it’s a terrible idea,” said Marcus Rayner, President of the New Jersey Civil Justice Institute. “It is bad for business from the get-go because it is a tax increase. But it is also bad for our state’s business climate in the long-term since it puts the state in the position of benefiting financially from excessive litigation. It is hard to imagine the state working to curb lawsuit abuse when the taxes on litigation are being used to fill budget gaps.”

 

This legislation would significantly increase the cost of doing business in New Jersey compared to other states at a time when we should be looking for ways to increase our economic competitiveness. In addition, taxation via litigation discourages the state from seeking to improve New Jersey’s horrific legal climate since doing so would decrease tax revenue.

 

Under current law, businesses are able to deduct punitive damages they have paid out. S3034, which is being sponsored by Sen. Sweeney (D-3), would make punitive damages taxable. Businesses would be hit by a double whammy – forced to pay tax on money that has already been redistributed by the judicial system.

 

The bill would also tax defendants, both companies and individuals, on money paid to plaintiffs on the defendant’s behalf. As it is currently drafted, the bill would tax insurance policy holders on the punitive damages paid out by the insurance company to plaintiffs on the policy holder’s behalf.

 

The New Jersey Civil Justice Institute opposes this bill because taxing damages will drive up the cost of doing business in New Jersey and disincentivize legal reform.

 

Click here to read NJCJI’s written testimony on this legislation.

 

###

 

Contact:

Emily Kelchen, NJCJI Dir. of Pub. Affairs

609-392-6557

Click here for a .pdf version of this release.

 

Categories

    Press Releases
    Recent News
    Top Stories

Tag Cloud

Appeal Bond Cap | Arbitration | Attorney Fees | Bad Faith | Ban the Box | Bankruptcy Trust | Business Climate | CFA | Civil Justice | Class Actions | CLE | Congress | Damages | Discovery | Double Dipping | Employment Law | Expert Evidence | Fee Shifting | Food Law | Governor Christie | Governor Murphy | Insurance | Judicial Independence | Juries | Medical & Pharmaceutical Liability | Medical Liability | New Jersey Bar Association | New Jersey Courts | New Jersey Legislature | New Jersey Supreme Court | NJCJI | Outrageous Lawsuits | Paid Sick Leave | Patent Law | Personal Jurisdiction | Pharmaceutical Litigation | Policy Teleforum | Rule of Law | SCOTUS | Settlement Trust Transparency | Statute of Limitations | TCCWNA | Third Circuit | Tort Reform | Trial Lawyers

Newsletter Sign Up




© 2021 NJCJI. All rights reserved.

Follow us on:

  • facebook
  • twitter
  • linkedin

TWITTER FEED TWITTER FEED

  • US Chamber and NJCJI Win Major Arbitration Case in NJ https://t.co/kNwABykb7i, Mar 26
  • https://t.co/3hRvGgjesg, Mar 12
  • https://t.co/9EDd0NzmNe, Mar 12
  • NJBIZ Conversations: Anthony Anastasio - NJBIZ ⁦@NJBIZ⁩ https://t.co/gdne9pyxYB, Feb 3
  • With our recent President change, NJCJI NJCJI would like to ensure we have the most up-to-date contact information… https://t.co/a5PWkhEUyG, Jan 8

QUICK CONTACT



Please enter the code as shown below

captcha

New Jersey Civil Justice Institute | 112 West State Street, Trenton, NJ 08608 | office: (609) 392-6557 | info@civiljusticenj.org