The Bill Lerach Tax Cut - WSJ.com

The Bill Lerach Tax Cut - WSJ.com: "What do you call 50,000 trial lawyers filing contingency-fee suits? House Ways and Means Chairman Charlie Rangel calls them people who deserve a tax cut. Or he might call them that if he wasn't trying to pass this $1.6 billion bouquet without any hearings or debate.

The Energy and Tax Extenders Act of 2008 is a catch-all bill of tax increases and special-interest tax cuts. Nestled inside is Mr. Rangel's gift for the trial bar. The provision would allow plaintiffs lawyers to deduct the up-front expenses of pursuing contingency-fee lawsuits, even in cases where the lawyer is expecting to be reimbursed for these expenses. The IRS currently considers these costs a loan from the lawyer to his client, and like other taxpayers, the lawyer can only deduct the loan if it isn't paid back."...