So Dewayne Johnson, who got cancer, alleged it was caused by Roundup and sued Monsanto. He won $289 million dollars as a result. Good for Dewayne..... but he gets to keep roughly one-tenth of that amount after taxes. Why? Because America is a Corporatocracy. The math is provided below:
ohnson was awarded $39 million in compensatory damages, and $250 million in punitive damages. The combined contingent fees and costs Mr. Johnson pays might total 50%. If so, he gets to keep half, or $19.5 million of the compensatory award. Since it is for his claimed non-Hodgkin's lymphoma, that part should not be taxed. Of the $250 million punitive award, $125 million goes to legal fees and costs, and $125 million to Johnson. So before taxes, his take home is $144.5 million. What about after taxes? The $250 million in punitive damages are fully taxable, with no deduction for the fees to his lawyer. At 37%, Johnson would lose $92.5 million to the IRS. That makes his after-tax haul from a $289 million verdict only $52 million.
The state of California also would take a cut of Johnson's award. State taxes of as much as $30 million would leave leave him with $20 million or less. While still a substantial sum, that would amount to less than one-tenth of the original award.
Meanwhile, as outlined by Slate a plaintiff who won a smaller award could conceivably lose money after paying taxes and legal fees
Monsanto can deduct the full $289 million, as well as its lawyers' fees, from its tax bill.
full article: https://www.cbsnews.com/news/monsanto-lawsuit-verd...