Litigation Funders Alarmed by Proposed 41% Tax in Federal Spending Bill

Litigation funders are currently expressing serious concerns regarding a provision in a significant federal spending bill. The proposal would introduce a 41% tax targeting the $16 billion litigation funding sector. Industry leaders describe this proposal as a “kill shot,” while academic voices caution that it could represent an “unprecedented” use of the U.S. tax code for targeting specific industries. For more detailed coverage on this developing situation, visit the report by Law360.