Taxpayers are subsidizing hush money for sexual harassment and assault

Source: Peter J. Henning, The Conversation, November 5, 2017

Many of the recent stories about sexual abuse claims against disgraced Hollywood mogul Harvey Weinstein, former Fox News host Bill O’Reilly and other powerful actors, journalists and executives mention settlements either they or their employers made to silence women who accused them of misconduct.

These settlements often require alleged victims to sign a nondisclosure agreement – essentially a pledge of secrecy – in exchange for a cash payment. They are designed to keep the reputations of allegedly abusive high-flyers intact, an arrangement that can allow repeated wrongdoing.

As a law professor who focuses on white-collar crime, what I find striking about these contracts is how they can be treated as tax-deductible business expenses. That means American taxpayers are helping foot the bill for keeping despicable behavior in the shadows.

I don’t believe that secret payments to settle sexual abuse claims should be tax-deductible. Here’s why…..