'Tort tax' report: Frivolous lawsuits cost more than $1,200 per resident in Florida

For a state where officials love to brag about its low taxes, Florida, according to a new nationwide report, has a blind spot: a tort tax. 

The tort tax, according to the report, from Citizens Against Lawsuit Abuse, is the reduction in output on a per capita basis when the costs of frivolous lawsuits is weighed against insurance increases, decreased productivity and more. The report, produced by The Perryman Group of Waco, Texas, found that the impact of excessive tort costs on the U.S. economy in 2023 included losses of an estimated $557.8 billion in output and losses of more than 4.81 million jobs when “dynamic effects are considered.” That’s up 7.2% from $520.2 billion in lost output and 0.83% from 4.77 million lost jobs in 2022. 

The reduction in output on a per capita basis nationwide implies a tort tax of $1,666 per person, higher than the 2022 estimate of $1,561, according to the report. “All major industry groups are negatively affected, with business services, retail trade, financial activities and manufacturing experiencing the greatest losses,” the report states. In addition, those costs often can passed on to consumers, from construction to grocery bills and insurance to health care.