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Chamber, AAJ battle again over story on proposed tax break

There are a few things in life that one can always rely on  – like death, taxes, and the complete lack of love lost between the U.S. Chamber of Commerce and the trial lawyers group the American Association for Justice.

That lack of love was demonstrated again this week with a story on a Chamber-backed newswire accusing AAJ officials of boasting about a special trial lawyers’ tax break that would be issued by the Treasury Department.

The story in Legal Newsline, which is owned by the Chamber, quoted John Bowman, the Director of Federal Relations for the AAJ, speaking to a delegate at a meeting in Canada. Bowman reportedly said that an administrative order from the Treasury would amend tax law to allow attorneys to deduct certain expenses and costs in contingency fee cases in the year they were incurred. Current law requires lawyers to wait until the case is resolved, which could happen years later.

Legislation introduced by Sen. Arlen Specter that would have done the same thing after being introduced last year.

Last year, Legal Newslaine ran a story about that legislation, citing another AAJ official’s comment that the bill would fail unless it was “tucked into” another larger legislative package.

AAJ shot back, calling that story “inaccurate and purposefully misleading,” and adding that the bill was designed to “treat the trial attorney profession like every other small business in this country, allowing them to deduct their expenses in the year incurred.”

The latest proposed Treasury Department plan has now drawn the scorn the Wall Street Journal‘s editorial board, which ran a piece today citing the Legal Newsline and blasting the proposed tax change. “And Democrats wonder why their performance in office has inspired a tea party revolt,” the editorial says of the plan.

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