Punitive damages are the lottery ticket of the US legal system.  Aggressive lawyers and willing plaintiffs are willing to push questionable litigation in the hopes of a big payoff by the jury.  (Remember the $39 million award for hot coffee?)

While actual damages are an appropriate award for a plaintiff to receive.  Should the plaintiff and their lawyer receive a windfall from punitive damages?  After all, punitive damages are designed to punish the defendant not reward the plaintiff.

We tax casino's as much as 75% on their income (here in Illinois).  Why not tax punitive damage awards by the same amount?  It takes away much of the incentive for litigation, improves the business climate, and brings needed money to the state treasury.