The American Dental Association (ADA) has issued a grassroots alert urging members to contact their congressional representatives to oppose a provision in the House Ways and Means Committee tax bill that could negatively impact dentists.
The committee recently introduced a tax bill that includes a provision that would eliminate federal deductions for pass-through entity taxes paid at the state level by certain service industries, including dentists.
The move “unfairly targets small dental practices,” the ADA said in the alert, signed by Jim Schulz, ADA’s senior vice president of government and public affairs.
“This would result in increased taxes on dentists who own or participate in S corporation or partnership structures, particularly in high-tax states,” the alert said, adding that approximately 30% of dentists nationwide would be directly impacted.
Under the Americans with Disabilities Act, the provision would reduce parity between pass-through businesses and large corporations; penalize health care providers with higher operating costs; and jeopardize reinvestment in staffing, technology, and patient care — particularly in rural or underserved areas.
The Grassroots Alert was issued during the ongoing budget reconciliation process and urges members to call or email their representatives to tell them to oppose the tax increase. Prior to the Ways and Means bill markup, the ADA had commented on the tax provisions in the reconciliation bill.
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