Post: Tort Tax...
Posted by Rem Dude on 4/11/07
I wonder how much of this is from fraudulent mold claims?
Study: Litigation Lottery Costs America $865 Billion Per
$124 billion in additional health care spending
alone; “Tort Tax” of $9,827 for a family of four.
America’s out-of-control legal system imposes a staggering
economic cost of more than $865 billion every year
according to a new scholarly study released March 27 by
the Pacific Research Institute, a free-market think tank
based in San Francisco, California. This figure is 27
times more than the federal government spends on homeland
security, 30 times what the National Institutes of Health
dedicate to finding cures for deadly diseases, and 13
times the amount the U.S. Department of Education spends
to help educate America’s children.
The authors of Jackpot Justice: The True Cost of America’s
Tort System calculated that the nation’s tort system
imposes a yearly “tort tax” of $9,827 for a family of four
and raises health care spending in the U.S. by $124
The new PRI study provides the most comprehensive
examination ever of U.S. tort costs. According to the
study’s lead author, Dr. Lawrence J. McQuillan, unlike
previous studies, Jackpot Justice calculates both the
direct and indirect costs of America’s legal system.
These include not just the direct cost of annual damage
awards, plaintiffs’ attorney fees, defense costs, and
administrative costs from torts but also the indirect cost
of the legal system’s impact on research and development
spending, the cost of defensive medicine, the related rise
in health care spending and reduced access to health care,
and the loss of output resulting from deaths due to excess
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