New Tax Proposal Could Bite Into Dental Practice Profits
A provision in a congressional tax bill threatens to increase taxes on dental practices structured as pass-through entities. Dentists across the country are being urged to speak up before this harmful change becomes law.
Dentists may face a significant financial hit under a new tax proposal advanced by the House Ways and Means Committee. The bill includes a provision that would eliminate federal deductibility for state-level taxes paid by pass-through entities, impacting many small dental practices organized as S corporations or partnerships. According to the American Dental Association (ADA), about 30% of United States dentists could see higher tax bills, especially in states with steep local taxes. The change risks widening the gap between small practices and large corporations, while further straining resources amid rising operational costs. This could limit dentists’ ability to invest in staff, technology, and patient care, particularly in rural or underserved areas. The ADA has issued a Grassroots Alert urging members to contact Congress and oppose the measure before it moves forward in the budget reconciliation process. Click here to read more.
