Tax advantages have allowed nonprofits to underwrite coordinated campaigns, politicize the courts and impose costs on defendants without direct accountability. 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. (00:23–00:33)
CLAIM
Asserts that preferential tax treatment encourages frivolous lawsuits, burdening courts and increasing costs.
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