June 2, 2011

L.A. Times supports bill to prevent deduction of punitive damages as business expenses

Today's L.A. Times has an editorial supporting AB 1276, which would prevent defendants from taking a tax deduction for payments of punitive damages.

The bill has been approved by the Assembly's appropriations committee by a vote of 12-5, but will not become law unless approved by a two-thirds majority in both houses of the legislature (it requires a 2/3 vote because it affects revenue).

Related posts:

Proposed California bill would prevent tax deductions for punitive damages

Proposal to eliminate [federal] tax deduction for punitive damages still alive

More from Prof. Markel on Tax Policy and Punitive Damages

"Taxing Punitive Damages"

Proposed [federal] legislation would eliminate tax deduction for punitive damages

Obama administration proposes to eliminate tax deduction for payment of punitive damages