Mr. Murray reported to the Environmental Protection Agency that his employer was illegally dumping chemicals into a river. His charges were true, and Mr. Murrays employer was fined. In retaliation, Mr. Murrays employer fired him and made deliberate efforts to prevent Murray from obtaining other employment. Mr. Murray sued the employer, claiming that his reputation had been damaged. Mr. Murray won his lawsuit and received an award for damages to his personal and professional reputation and for his mental suffering. He argues that he was awarded damages as recovery of his human capital and a recovery of capital is not income. Therefore the Federal government does not have the power to tax the award