Close Menu
  • Home
  • Latest News
  • Indian News
  • Political News
  • Global News
  • Sports
  • Lifestyle
    • Travel
    • Health
    • Money
  • More
    • Entertainment
    • Technology
    • Shopping Reviews
    • Insurance News
    • HUMAN RIGHTS
    • Apps
What's Hot

Former Indian Prime Minister Dr. Manmohan Singh Passes Away at 92

Discover The Timeless Charm Of Udaipurs Unchanged Street After 50 Years

Alterations to the State Department’s Human Rights Reports Threatens Global Accountability – UAB Institute for Human Rights Blog

Facebook X (Twitter) Instagram
Top Khabar
  • Home
  • Latest News

    Former Indian Prime Minister Dr. Manmohan Singh Passes Away at 92

    June 16, 2025

    Discover The Timeless Charm Of Udaipurs Unchanged Street After 50 Years

    June 16, 2025

    Alterations to the State Department’s Human Rights Reports Threatens Global Accountability – UAB Institute for Human Rights Blog

    June 16, 2025

    4 Factors that can Impact the Cost of Car Repairs

    June 16, 2025

    Federal Report Details NYPD Unit’s “Troubling,” “Unconstitutional” Conduct — ProPublica

    June 16, 2025
  • Indian News
  • Political News
  • Global News
  • Sports
  • Lifestyle
    • Travel
    • Health
    • Money
  • More
    • Entertainment
    • Technology
    • Shopping Reviews
    • Insurance News
    • HUMAN RIGHTS
    • Apps
Trending Topics:
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
Top Khabar
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
Money

Accountants and lawyers team up to fight Trump tax provision

Sunder BishtBy Sunder BishtJune 15, 2025No Comments4 Mins Read
Accountants and lawyers team up to fight Trump tax provision

Unlock the White House Watch newsletter for free

Your guide to what Trump’s second term means for Washington, business and the world

US accountants and lawyers are mounting a furious lobbying effort on Capitol Hill to head off a tax rise targeted at professional services firms, which is buried in Donald Trump’s “big, beautiful bill”.

The giant tax and spending package lawmakers are negotiating would shut down a tactic firms used to cut partners’ federal income tax, if the pressure campaign on Republican leaders in the US Senate fails.

The American Bar Association this week wrote to senators calling the measure “fundamentally unfair” for singling out professional services firms, which include doctors, dentists and veterinarians as well as lawyers, accountants and consultants.

The American Institute of Certified Public Accountants called the measure “ugly” and has co-ordinated local accounting groups from across 53 states and US territories to write to senators demanding the measure be dropped.

At stake is a workaround US states introduced after the first Trump administration limited the ability of individuals to deduct state and local tax payments from their income before calculating their federal tax liability.

The so-called Salt cap was one of the more contentious measures in Trump’s 2017 Tax Cuts and Jobs Act, because it disadvantaged people in typically Democratic areas with high state income taxes and local property taxes. The legislation reduced to $10,000 the total state and local taxes that taxpayers could deduct from their returns.

It proved particularly uncomfortable for homeowners in well-off areas in states such as New York and California — as well as for highly paid lawyers and accountants, because the profits of partnerships are “passed through” to partners and taxed as individual income. This left them with significantly higher state income tax bills than employees of traditional companies.

The workaround, introduced in 36 states, allows state income taxes to be paid at the firm level, but House Republicans proposed barring its use by professional services firms.

The Salt deduction has again proved a flashpoint in negotiations over the One Big Beautiful Bill Act, which passed by the House of Representatives last month and must be aligned with a bill in the Senate to become law. The House version raises the Salt cap to $40,000 but contains other measures to limit the cost of the move, including barring the use of the workaround for partnerships classified as a “specified service trade or business”, a broad category covering accountants, lawyers, doctors and some other professional services firms.

Partnerships in other sectors could continue to use the workaround.

“It’s targeted and it’s ugly,” said Melanie Lauridsen, vice-president for tax policy and advocacy at the AICPA, which counts armies of tax accountants among its 400,000 members and first raised a public alarm about the measure last month.

“It’s complicated and it’s buried in there,” Lauridsen said. “We were aware of it first and faster.”

Top Senate Republicans have indicated they intend to scale back the Salt cap, which they say is regressive and costly. But negotiations are continuing with House members who are adamant that the cap should be raised.

According to a Tax Foundation analysis, eliminating the workaround for professional services businesses would raise $73bn over 10 years to partially offset the cost of raising the cap.

The move would be “fundamentally unfair and further widen the tax parity gap between professional service businesses and other pass-through businesses and corporations”, ABA president Bill Bay wrote in a letter to Senate leaders this week.

“The vast majority of law firms in America are small pass-through businesses, as more than 75 per cent of practising lawyers in our nation work as solo practitioners or in small law firms . . . These professional service businesses provide just as many benefits to the economy and society at large as other pass-throughs and corporations.”

Additional reporting by Lauren Fedor in Washington

Share this:

  • Click to share on Facebook (Opens in new window) Facebook
  • Click to share on LinkedIn (Opens in new window) LinkedIn
  • Click to share on X (Opens in new window) X

Like this:

Like Loading...

Related News

Previous Article15 Millionaire Habits to Start Now (That’ll Shrink Your Spending)
Next Article Hormone Replacement Therapy Has Entered the Longevity Chat Room

Related Posts

9 Real Ways To Get Free Samples (Yes, These Actually Work!)

June 16, 2025

Which Debts Should You Pay Off First — Credit Cards or Student Loans?

June 14, 2025

Is Rover Worth It? A Guide to Making Money with Rover

June 13, 2025
Leave A Reply Cancel Reply

Hot Topics

Yunus announces Bangladesh elections in first half of April 2026 | World News

Your face in the future: Humanize your insurance brand experience to differentiate | Insurance Blog

Yankees hope for different outcome vs. Red Sox’s Walker Buehler

WPP chief steps down as advertising group struggles with rise of AI

Latest Posts

Former Indian Prime Minister Dr. Manmohan Singh Passes Away at 92

June 16, 2025

Discover The Timeless Charm Of Udaipurs Unchanged Street After 50 Years

June 16, 2025

Alterations to the State Department’s Human Rights Reports Threatens Global Accountability – UAB Institute for Human Rights Blog

June 16, 2025
Facebook X (Twitter) Pinterest Vimeo WhatsApp TikTok Instagram

Popular Categories

  • Apps
  • Entertainment
  • Global News
  • Health
  • HUMAN RIGHTS
  • Insurance News
  • Lifestyle

All Other News

  • Money
  • News
  • Political News
  • Shopping Reviews
  • Sports
  • Technology
  • Travel

Pages

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer
  • Rss Feed
  • Indian News

Subscribe to Updates

Subscribe to Top Khabar and get daily news updates delivered straight to your inbox for free.

© 2025 Top Khabar. Designed by Top Khabar.
  • Indian News
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Disclaimer

Type above and press Enter to search. Press Esc to cancel.

%d