Accountants and lawyers cooperate to combat the provision of Trump tax

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American accountants and lawyers are escalating in an angry pressure effort on the Capitol Hill to go to increase the taxes targeting professional services companies, which have been buried in a “big and beautiful invoice” Donald Trump.

Giant Tax and spending package Legislators are negotiating the closing of the tactics used to reduce the federal income tax of partners, if the campaign of pressure on Republican leaders in the US Senate fails.

The American Lawyers Association wrote this week to the members of the Senate, called this “primary, mainly” procedure for professional services companies, which include doctors, dentists, veterinarians, as well as lawyers, accountants and advisers.

The American Institute of Public Accountants Relying on the “ugly” procedure has launched, and it has coordinated local accounting groups through 53 states and the American regions to write to the members of the Senate who are calling for the projection of the procedure.

On the test, there are American states that were presented after the Trump administration limited the ability of individuals to deduct the state and local tax payments from their income before calculating their federal tax commitment.

The so -called CAP CAP was one of the most controversial measures in the law of Trump’s tax discounts and its jobs for 2017, because it was usually deprived of people in democratic areas with high state income taxes and local property taxes. The legislation decreased to $ 10,000, the total local and local taxes that taxpayers can summarize from their returns.

It has been proven that it is especially uncomfortable with homeowners in the wonderful areas of states such as New York and California-as well as the paid lawyers and accountants, because partnership profits are “transferred” to partners and taxes as individual income. This left them with state income tax bills much higher than traditional companies employees.

The alternative solution, which was provided in 36 states, allows the payment of state income taxes at the company level, but Republicans in the House of Representatives suggested that it be maintained by professional services companies.

The salt discount again has proven a flash point in Negotiations On the law of one beautiful law, which was approved by the House of Representatives last month and must be the alignment of a draft law in the Senate to become a law. The version of the house raises the salt roof to $ 40,000, but it contains other measures to reduce the cost of this step, including preventing the use of solutions for classified partnerships as “trading or specific service business”, a wide category that covers accountants, lawyers, doctors and some other professional services companies.

Partnerships in other sectors can continue to use the alternative solution.

“It is targeted and ugly,” said Melanie Lorridesen, Vice President of Tax Policy and Call in AicPa, who calculates the armies of tax accountants out of 400,000 of its members, and raised the first general warning about this measure last month.

“He is complicated and buried there,” Lorridin said. “We were aware of that first and faster.”

Senior Senate Republicans have indicated that they intend to expand the scope of salt cover, which they say is declining and costly. But negotiations are continuing with members of the House of Representatives who insist on lifting the cover.

According to the Tax Corporation analysis, getting rid of solutions in professional services will collect $ 73 billion over a period of 10 years to make up for the partially raising the cost of raising the maximum.

“This step will be” an mainly unfair “and the expansion of the tax equivalence gap between professional service companies and other North companies and companies.

“The vast majority of law firms in America are small companies through more than 75 percent of lawyers practicing in our nation working as individual practitioners or in small law firms … These professional companies provide many benefits to the economy and society in general such as traffic operations and other companies.”

Participated in additional reports from Lauren Fedor in Washington