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
Proposed [federal] legislation would eliminate tax deduction for punitive damages
Obama administration proposes to eliminate tax deduction for payment of punitive damages
