Alliance Opposes Tax Deduction Policy Proposal That Would Encourage More Malpractice Claims
The Alliance recently expressed strong objections to the U.S. Treasury Department’s proposed policy change that would provide a tax deduction for trial attorneys entering into certain contingency fee contracts with their clients. The policy, which would cost taxpayers an estimated $1.5 billion, would allow trial attorneys to deduct contingency fees and other litigation expenses as business expenses. The Alliance believes that this favorable treatment would provide a financial incentive that encourages more claims against physicians, despite that fact that under existing policy the majority of claims are filed with no basis and are closed without payment.
Click here to view the Alliance letter to Secretary Geithner in its entirety.