Federal Spending Bill Scraps 41% Litigation Funding Tax, Future Challenges Loam

Litigation funders are expressing relief following the elimination of a proposed punitive tax within the recent federal spending bill. The provision had aimed to impose a 41% tax on the $16 billion litigation funding sector, a move that would have significantly impacted the industry’s operations. Despite this temporary reprieve, stakeholders believe that this could signal the beginning of further challenges, especially from corporate adversaries.

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