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Unconstitutional to tax emotional-distress damages?

The Supreme Court is being urged to resolve that question, which flared up when a three-judge panel of the D.C. Circuit found such taxation unconstitutional, and then subsided when the full circuit sitting en banc reversed that decision. The case, which arose under whistleblower statutes, is called Murphy v. IRS. [TaxProf/ABA Journal]

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Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.