WASHINGTON — Senators Thad Cochran and Roger Wicker (R-Miss.) have aired their concerns about the possibility that the U.S. Treasury Department is planning to provide tax breaks for trial lawyers without congressional action.
Cochran and Wicker were among 24 Senators who sent a letter to Treasury Secretary Timothy Geithner to express concern over reports about the tax breaks for trial lawyers and to request more information on these efforts.
“I cannot understand the rationale behind offering tax breaks to trial lawyers when dialogue among some Democrats in Washington has turned to which Americans should have their taxes increased,” Cochran said.
“It is alarming that the administration is considering bypassing the legislative process to deliver a special deal for trial lawyers just months before an election,” said Wicker. “The administration should be focused on creating jobs, reducing the deficit, and restoring the economy, not working on potential tax breaks for trial lawyers.”
The letter was prompted by recent reports that the Treasury Department is considering a policy change that would allow trial lawyers to deduct expenses and court costs in the year in which they were incurred, which could cost the government up to $1.6 billion. Current law stipulates that expenses related to ongoing lawsuits can only be deducted in the year in which a case is decided.
“We have serious concerns about this proposal which could add $1.6 billion to our already exploding national debt. We believe that this targeted tax break will do nothing to spur economic growth or job creation. Instead, it would only further provide incentives for contingency fee lawsuits which raise prices for consumers and decrease employment,” the letter to Geithner states.
In the letter, senators also point out that strong public opposition has stopped the Senate and House tax-writing committees from considering legislation to authorize similar tax favors for trial lawyers.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info