Litigious Tax
Image by Sang Hyun Cho Here’s an idea to improve the legal system, introduce a litigious, consumption tax. More specifically, a punitive tax for litigious behavior that results in unsuccessful lawsuits. How it would work. Every person, or legal entity, would have win/loss records as a plaintiff and a defendant in the justice system. A decision in your favor (be it a settlement or verdict) counts as a win, otherwise it counts as a loss. The tax is proportional to the number of unfavorable decisions, so the more losses you accrue, the higher tax you pay for the next lawsuit. The tax is non-refundable. A plaintiff must pay the tax before their case can proceed in court. The tax is meant to deter frivolous and abusive legal behavior. Having separate plaintiff and defendant records disincentivizes the person that sues to intimidate (plaintiff) and makes it costly for mega corporations to be negligent (defendant). To prevent legal disenfranchisement, the tax rate would target heav...