The slew of companies caught red-handed in this year of corporate sleaze face potentially colossal legal claims, but they may enjoy pleasant reprieves next year huge tax breaks from Uncle Sam.
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The IRSs conclusion: The amounts paid by Taxpayer pursuant to the settlement are currently deductible.
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People are going to be upset when they hear companies can deduct these expenses, Hrm, I'm not. Corporations are not people. Corporations do not pay taxes on expenses. The reason for this is that eliminating specific deductions would allow the government to incent corporations to operate a certain way, thus leading to effective centralized economic control. This is a fundamental feature of capitalism. If the agencies that are levying fines don't think that the fines are punitive enough on their own, they should RAISE the fines rather then setting a precident that will lead to central control of the economy. Firms accused of chicanery could get IRS tax break | 
