The Tort Tax Lives On
What happened: A recent study by the Institute for Legal Reform analyzed the cost to Americans created by the U.S. court system’s rising costs. Read more
Tell me more: In 2022, the national cost of the tort system amounted to $4,207 per household, with these costs rising faster than inflation and GDP.
- This growing financial burden includes court costs and lawsuit settlements, which are passed on to consumers, making goods and services more expensive.
- Commercial liability grew more than personal liability.
What about Texas? Texans are particularly impacted by the Tort Tax, paying $4,594 per household—$387 more than the national average.
- With that extra cost, Texans could buy 998 breakfast tacos from Juan in a Million, 499 #1 Combos from Whataburger or 1,794 gallons of gas at $2.56 per gallon.
TLR Thoughts: The rising cost of litigation has placed an unfair burden on families and job creators. This is a major reason why TLR helped form the Lone Star Economic Alliance, advocating for common-sense lawsuit reforms in 2025. Without legislative action, the Tort Tax will continue draining Texans’ wallets, harming both families and the broader economy.
‘You Just Get Hit With Everything’ | Texas Insurance Rates Soar as State Lawmakers Look for Solutions
What happened: Home and auto insurance rates have surged across Texas, leading to bipartisan discussions on how to tackle the growing crisis. Read more
How we got here: Texas’ legal environment—plagued by nuclear verdicts and unnecessarily inflated settlements—has significantly contributed to rising insurance costs.
Tell me more: Everyone is facing increasing insurance premiums, from families looking for homeowners or personal automobile coverage to small businesses looking for general liability coverage.
In his own words: “We’re No. 1 in what we call ‘nuclear verdicts’… We do need to look at lawsuit reform.” –Rich Johnson, Insurance Council of Texas
TLR Thoughts: Excessive lawsuits and inflated verdicts and settlements force insurance companies to raise premiums or leave the market altogether, leaving consumers with higher costs and fewer choices. In response to this, Texans have joined together to form the Lone Star Economic Alliance to advocate for reforms to curb litigation abuse and bring transparency to litigation. Lawmakers can restore balance to the system and ease the financial burden on Texans by passing common-sense reforms in 2025.
