Broker, retirement groups make last-minute pleas to change tax legislation

“If the disparate tax treatment between the two models finds its way into the final legislation, then [financial advisers] could be motivated to leave employee FA model firms or re-classify as independent contractors solely [to] take advantage of the 23% deduction…and receive a lower tax rate on their income,” wrote Christopher A. Iacovella, EDA chief executive. “We request a change in the final language to prevent any tax arbitrage that could threaten the employee FA business model.”