U.S. Tort Costs Exceed Federal Spending on Homeland Security, Education And Infrastructure
November 24, 2008
Each American paid an $835 “tort tax” in 2007 to finance the $252 billion burden the tort system imposes on our economy, according to the 2008 Update on U.S. Tort Cost Trends by consulting firm Towers Perrin. That $252 billion is more than triple what the federal government spent on education; nearly five times federal spending on highways and mass transit; and almost six times the 2007 budget for the entire Department of Homeland Security.
U.S. tort costs rose by 2.1% in 2007, reversing a one-year decline. Towers Perrin expects tort costs to keep rising in 2008 and beyond, as tort lawyers target investment banks, mortgage brokers and other financial institutions in the wake of the subprime mortgage meltdown and financial crisis.