GOP Tax Cuts' Law Firm Exclusion Could Bring Pushback
The Republican tax bill proposed Thursday offers some relief to most businesses set up as partnerships, with a capped 25 percent tax rate on certain income they generate, but a carveout excluding professional services firms will leave many law firm partners paying far more, potentially creating a good deal of pushback.
Michael Sanders, lead partner of Blank Rome’s Washington, D.C., office tax group, said the tax differential between corporations and professional services firms could even scare away some young people from going into a profession like law.
“What this does is it creates a disincentive for talented young people to go into these professions,” Sanders said.
But, he added, it’s important to note the bill could change a good deal before it becomes law.
“We need to see what amendments the House makes and what the Senate does. There’s more to come here,” he said.
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"GOP Tax Cuts' Law Firm Exclusion Could Bring Pushback," by Aebra Coe was published in Law360 on November 3, 2017.