05/22/2025
Heads-up to physician groups, law firms, and anyone who owns or advises a business structured as an S-corporation, partnership, or LLC—especially in healthcare, law, accounting, or consulting.
There’s a federal tax proposal moving fast in the House—expected to be voted on before Memorial Day—that could significantly raise your federal tax bill.
What’s at stake?
The repeal of the Pass-Through Entity Tax (PTET) SALT workaround—a provision that currently lets S-corps and partnerships deduct state taxes at the entity level and bypass the $10K cap on individual SALT deductions.
Medical practices and other service-based firms across the country, and for many, this deduction has created meaningful tax savings. One group could lose over $25,000/per partner per year if this change goes through.
If this gets repealed:
• Your federal tax burden goes up
• C-corporations key their full state tax deduction. Pass-throughs lost it-stuck again with the $10K individual State and Local Tax cap.
• This creates an unfair advantage for large corporations and hurts small and mid-sized businesses
• There’s less capital available for hiring, expansion, or reinvestment
The vote could happen as early as May 23–25. If you’re impacted, now’s the time to speak up.
📍 Find your Representative: https://congress.gov/members
Suggested message:
Repealing the PTET SALT deduction is a direct hit to the small and midsize businesses that power our local and national economy. It unfairly punishes the most responsible contributors to growth and stability. Please vote NO.
This isn’t just about policy—it’s about keeping your business competitive in a system that’s already skewed toward large corporations.
