According to PointofLaw.com, plaintiffs’ attorneys are seeking a $1.6 billion federal tax break for contingent-fee lawyers that would allow them deduct expenses as made, rather than in the year of settling a suit. A legal opinion prepared by the Washington Legal Foundation argues that:
While one cannot calculate it mathematically, having the federal government bear 40% of the initial costs allows plaintiffs’ attorneys to take more cases with higher risks. The result to industries targeted by plaintiffs’ lawyers will be staggering.
The authors further rebut the argument that the tax break would treat plaintiffs’ attorneys’ expenses similarly to those of other small businesses.