Call to Action:

Please contact your Members of Congress to voice your opposition to a provision in the House Ways & Means tax bill that unfairly targets small business dental practices—and other service-based professions, by eliminating the ability to deduct pass-through entity taxes (PTET) at the federal level.

This would result in a new tax increase on dentists who own or are partners in practices structured as S corporations or partnerships, especially in high-tax states. Approximately 30% of dentists nationally would be directly impacted, based on estimates from the Academy of Dental CPAs.

What’s the Issue?

The House Ways & Means Committee recently advanced a tax bill with a provision that would eliminate federal deductibility for state-level PTET payments by certain service professions, including dentists. This language was included in the bill text released just 41 hours before the vote.

Dentists who own practices structured as pass-through entities have relied on PTET elections to avoid the $10,000 SALT deduction cap. This change would reverse that, raising taxes on dentists simply based on how their practice is organized. 

Dentists are already limited under the small business (Sec. 199A) deduction, and this proposal adds a second tax penalty, further widening the gap between service-based practices and large corporations simply by how you are incorporated.

Why It Matters

• Raises taxes on dental practice owners who file as S corps or partnerships

• Reduces parity between pass-through businesses and large corporations

• Penalizes healthcare providers in the midst of rising operating costs

• Jeopardizes reinvestment in staffing, technology, and patient care, especially in rural or underserved areas

How You Can Help

Call or email your Representative today. Tell them to oppose this unfair tax increase on dentists and other service-based small businesses.

TAKE ACTION