Just as nonprofit tax exemptions can directly incentivize lawfare for profit third party litigation funders, preferential tax treatment turns lawsuits into tax advantaged asset class leading to predatory and frivolous lawsuits that overburden the courts and raise prices. Both sectors bypass normal processes. Nonprofits evade democratic policymaking through tax exempt lawsuits and for profits use tax loopholes to treat courts as an investable vehicle. This distorts outcomes and harms everyday Americans through their higher cost. Ronald Reagan once said, if you want more of something, subsidize it. If you want less of something, tax it. (00:35–00:47)
CLAIM
Asserts that nonprofits and for-profits exploit tax laws to influence the legal system.
This is an excerpt from a raw transcript. The assertions have not been audited or verified. Tap the video to view the source footage and understand the context.
