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Press Release

    The Lawsuit Tax: America's Hidden Tax

    05/25/2000

    It seems that every time we turn around the government taxes us. If it's not an income tax, it's a sales tax; if it's not a sales tax; it's a property tax. Taxes cost American families thousands of dollars a year. But few families realize that their tax burden does not end with the government. Trial lawyers are robbing decent, honest Americans of their money, trust, freedom, livelihood, and peace of mind by forcing the average American family into paying the "lawsuit tax."

    Lawsuit abuse is a major problem in our society and a serious drag on our economy. The question is no longer if or when a lawsuit will affect us, but how much?

    A study by the Public Policy Institute in New York found that lawsuit abuse costs the average New Hampshire citizen $674 per year. Just think how many working families would prefer to save around $2,700 (tort tax for avg. family of four) for their children's education or even a summer vacation. Or how many young people riddled with debt would prefer to apply that $674 toward paying their loans off or actually start saving for a house or retirement?

    The Lawsuit Tax costs every American hundreds of dollars each year:

    How much do you pay in lawsuit taxes? Consider these items and medical services:

    Eight Foot Aluminum Ladder:

    Average Retail cost is $119,
    the true cost is $94;
    lawsuit tax = $25

    Football Helmet:

    Average retail cost is $200,
    the true cost is $100;
    lawsuit tax = $100

    Tonsillectomy:

    Average doctor's fee is $578,
    the true cost is $377;
    lawsuit tax = $201

    Two Day Maternity Stay:

    Average cost is $3,367,
    the true cost is $2867;
    lawsuit tax = $500
    What You Can Do to Help.
    From sports equipment to life-saving surgery, consumers pay the price for too many frivolous lawsuits. The "lawsuit tax" burdens Americans everyday with higher costs and less availability of services. We need to save our legal system from exploitation by an elite group of trial lawyers. So how can you make this difference? Take the time to write your congressman and urge them to return our legal system to honest, hardworking Americans. Our legislators need to pass laws that return fairness and justice to our system of civil justice by voting for reasonable reforms.