Democrats have tucked a lucrative $2.5 billion tax break inside President Biden's multitrillion-dollar social welfare bill that would benefit the trial lawyers lobby, spurring Republican accusations of political backscratching.
The tax break allows trial lawyers working on a contingency basis, meaning they are paid only if a case is settled in their favor, to deduct expenses immediately.
Republican lawmakers argue the lucrative write-off is nothing more than a giveaway to the trial lawyers lobby, which heavily underwrote Mr. Biden's presidential bid.
Not only would trial lawyers be able to deduct expenses from contingency cases immediately, but they also would be allowed to do so even if there is the "Possibility that such amount[s] will be repaid" after trial.
What's more, Mr. Biden's bill stipulates that income trial lawyers derive from contingency cases "Shall not be reduced" by the write-off.
In instances where a case is lost, the IRS allows trial lawyers to write off the expenses like a bad loan.
The American Association for Justice, the top lobbying organization for trial lawyers, argues the write-off is needed because it may take years for cases to be settled.
https://www.washingtontimes.com/news/2021/nov/23/biden-push-25b-tax-break-lawyers-spurs-accusations/
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