Vince Fong, U.S. Representative for California’s 20th Congressional District, has expressed concerns over lawsuit abuse, describing it as a “hidden tax” that increases the cost of living by thousands per resident.
“These issues don’t just impact employers and job creators—they are a hidden tax that we all pay,” said Fong, U.S. Representative of California’s 20th Congressional District (D). “Annual studies have repeatedly shown that lawsuit abuse raises the cost of living by thousands of dollars per resident.”
According to Kern Valley Sun, California has seen a rise in lawsuit abuse, particularly under laws such as the California Invasion of Privacy Act. The publication reported that lawmakers are considering reforms to tackle this issue, which is said to raise costs and negatively impact small businesses and consumers.
A 2022 study by the Perryman Group, cited by Citizens Against Lawsuit Abuse, indicates that lawsuit abuse costs California families an average of $4,430 in lost earnings annually. Households also reportedly pay an additional $3,876 in inflated expenses. The total yearly impact per household from excessive litigation is said to exceed $8,300.
The Brattle Group’s 2022 report for the Institute for Legal Reform said that U.S. tort costs reached $529 billion or 2.1% of GDP, with a growth rate of 7.1% per year since 2016. The report highlighted that California’s “tort tax” amounted to $594.74 per resident in 2020, underscoring escalating costs from lawsuit abuse over time.
Fong was elected as the U.S. Representative for California’s 20th District in 2024. He previously served in the California State Assembly and as district director for Kevin McCarthy. His focus includes economic development and legislative reform.
