- Associated Press - Wednesday, January 14, 2015

MONTPELIER, Vt. (AP) - Vermont U.S. Sen. Patrick Leahy has introduced legislation to end a practice in which companies found to have engaged in wrongdoing can write off the punitive damages they must pay as a business expense.

Leahy says companies now enjoy a tax break when they are forced to pay punitive damages after being found to have engaged in wrongdoing.

It’s not the first time Leahy has tried to pass a No Tax Write-Offs for Corporate Wrongdoers Act. He did so as well in 2011, after a mine accident in West Virginia and the Deepwater Horizon oil rig disaster in the Gulf of Mexico.

Leahy says ending the tax deduction for punitive damages could result in about $335 million in additional government revenues over the next 10 years.

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