Inflation has crushed small businesses and families these last few years, and the higher prices can be blamed on a litany of factors: Washington’s runaway spending, the post-pandemic recovery, wars overseas. But there is a lesser known and acknowledged driver of inflation that gets little attention.  That is abuse of the legal system.

Governor Brian Kemp has identified this problem and has vowed to fix it. The Governor calls it the “tort tax”, and it costs families thousands of dollars a year. Independent studies have shown that the costs associated with excessive litigation amounted to 2.1% of the U.S. GDP last year, and it’s only getting higher. What’s worse, is that Georgia has one of the highest tort tax burdens on families in the country. According to the Institute for Legal Reform, the costs associated with excessive litigation equate to over $5,000 a year for Georgia households.

It’s not hard to see why. Every frivolous lawsuit forces businesses to raise prices, cut jobs, and pay higher insurance premiums. That means everything—food, gas, clothing, and medical care—gets more expensive for consumers. We’re all paying for this broken system.

Now is the time to reform Georgia’s legal system to protect honest businesses and families from unnecessary legal costs. We can allow legitimate claims while stopping the lawsuit abuse that’s driving up the cost of living for everyone. Governor Kemp’s legislation is a step in the right direction to lower costs for Georgia families.

Clay Cox, small business owner and Former State Representative

https://instituteforlegalreform.com/wp-content/uploads/2024/11/2024_ILR_USTorts-CostStudy-FINAL.pdf