Editorial: Sen. Thom Tillis delivers a great win for President Trump by closing a liberal tax loophole

The Washington Reporter proudly commends Sen. Thom Tillis (R., N.C.) for his steadfast leadership in securing the inclusion of the Tackling Predatory Litigation Funding Act in President Donald Trump’s One Big Beautiful Bill. This is a win for North Carolina, a win for President Trump, and a win in our fight against inflation.

This legislation, a cornerstone of Tillis’s commitment to working North Carolinians, targets a critical issue in our legal system: the predatory practices of third-party litigation funding (TPLF). By addressing this exploitative loophole, Senator Tillis is not only protecting the integrity of American courts but also ensuring that hardworking taxpayers are not left footing the bill for frivolous lawsuits. His efforts deserve applause, as they align with President Trump’s bold economic priorities, and help pay for the popular “no tax on tips” policy, while standing up to the self-serving plaintiff’s bar and their pay-for-play influencer schemes.

The losers in this fight are the plaintiffs’ bar. A few exceptions are conservative, no doubt. But as a whole, the plaintiffs bar is extraordinarily liberal, they are one of if not the biggest source of funding for Democratic politicians, and they drive up costs for the rest of Americans.

The Tackling Predatory Litigation Funding Act is a common-sense reform that addresses a growing problem in our judicial system. Third-party litigation funding allows outside investors — often foreign entities — to bankroll lawsuits in exchange for a share of the profits, treating our courts like a casino. These financiers drive up litigation costs, delay justice, and burden American businesses and consumers. Worse still, the current tax code incentivizes this behavior.

Senator Tillis’s bill levels the playing field by taxing these profits at the ordinary income rate (typically 37 percent) plus a 3.8 percent surcharge, ensuring fairness and discouraging meritless lawsuits that clog our courts and harm our economy. After all, why should litigation hedge funds pay a lower rate than hard-working Americans?

The plaintiffs’ bar is now trying to kill President Trump’s One Big Beautiful Bill to keep their tax loophole — but Republicans shouldn’t let them.

This reform is a win for North Carolinians and Americans nationwide. Excessive litigation acts as a hidden tax, raising costs for workers, consumers, and shareholders. By curbing predatory funding, Tillis’s legislation protects small businesses and families from the ripple effects of frivolous lawsuits, fostering an environment where job creation and economic growth can thrive.

Senator Tillis has long been a champion for working North Carolinians. From his early days as a warehouse clerk to his rise as a business leader, Tillis understands the challenges faced by everyday families. His public service — first as a local commissioner, then as Speaker of the North Carolina House, and now as a U.S. Senator — reflects a deep commitment to policies that generate opportunity and fairness.

Whether securing $1.65 billion in disaster relief for Hurricane Helene victims or advocating for veterans’ benefits, Tillis has consistently put North Carolinians first. His leadership on this bill is yet another example of his dedication to shielding his constituents from exploitative systems while promoting economic stability.

While Senator Tillis may face liberal attacks for his great work on this bill, he should hold his head high — he delivered a great win for President Trump and for America.