Sen. Tillis Vows Second Round in Litigation‑Finance Tax Battle
Sen. Thom Tillis (R–N.C.) said he’s not backing down in his push to impose a special tax on litigation‑finance investors, signalling a new legislative attempt after an initial setback.
According to a report in Bloomberg Law, Tillis introduced the Tackling Predatory Litigation Funding Act earlier this year, which would levy a 41 % tax on profits earned by third‑party funders of civil lawsuits (37 % top individual rate plus 3.8 % net investment income tax). While the bill was included in the Senate Republicans’ version of the tax reconciliation package, the tax provision was ultimately removed by the Senate parliamentarian during the June process.
Tillis argues this is about fairness: he says that litigation‑finance investors enjoy more favourable tax treatment than the victims who receive legal awards, a situation he calls “silly.” He acknowledged the industry’s strong push‑back, noting a high level of lobbying from entities such as the International Legal Finance Association and other funders. “You couldn’t throw a rock and not hit a contract lobbyist who hadn’t been engaged to fight this … equitable tax treatment bill,” he said.
Though Tillis is not seeking re‑election and will leave office next year, he remains committed to using his remaining time to keep the tax issue alive. His remarks suggest this debate is far from over and could resurface in future legislation.
