The troubling state of our economy is, appropriately, being discussed all around us.
While Americans are making less, losing their jobs and fighting to keep their head above water, there is yet another clandestine way we are being robbed of our hard-earned money. In times of economic uncertainty, we need to be more aware than ever of where our every dollar is going.
Lawsuit Abuse Awareness Week, (October 6 to 10) is the ideal time to illustrate one tax most people are unaware they even pay – the lawsuit tax. In its 2007 annual report on U.S. tort cost trends, Tillinghast Towers Perrin found that our country paid $247 billion in tort costs. That comes out to $825 for every man, woman and child, or $3,300 for a family of four.
This “tax” is excised in numerous ways, such as higher prices for goods and services, higher insurance premiums, and higher medical and pharmaceutical bills.
As hard as this cost hits citizens, it impacts company’s even harder, particularly small businesses. A recent survey by California Citizens Against Lawsuit Abuse (CALA) and members of the National Federation of Independent Business (NFIB) found that lawsuits have a significant impact on the small business community.