The California State Assembly has rejected AB 1276, the proposal to prohibit taxpayers from deducting punitive damages as a business expense. (See our prior post.) The vote tally was 50 Ayes and 26 Noes, with 4 members not voting, which means the proposal failed under Prop 26, which requires a two-thirds supermajority vote to approve a tax increase.
Legislation
Assembly rejects proposal to eliminate tax deductions for punitive damages
February 1, 2012
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