Biden push for $2.5B tax break for lawyers spurs accusations of political payoff | WHAT REALLY HAPPENED X-Frame-Options: SAMEORIGIN

Biden push for $2.5B tax break for lawyers spurs accusations of political payoff

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. Such expenses include hourly labor fees and the expenses associated with waging a lawsuit, such as filing and deposition costs.

On average, according to the American Bar Association, the fixed rate for contingency cases is anywhere between 33% and 40% of the total settlement payout. In some instances, the contingency fee can range upward of 50%.

Given that legal costs have soared in recent years, the Joint Committee on Taxation estimates the write-off would cost taxpayers $2.5 billion over the next decade.

Comments

SHARE THIS ARTICLE WITH YOUR SOCIAL MEDIA