Washington, D.C. – April 15, 2014 – (RealEstateRama) — As the construction industry rebounds amid tepid economic growth, many Associated Builders and Contractors (ABC) members are greeted with a significant tax increase this week. The contractors who emerged from the recession already paid the highest effective tax rate of any sector, and now they face even higher taxes thanks to rising marginal rates, reinstated limits on deductions, and new surtaxes on wages and income stemming from the health care law.
What’s more, small construction businesses organized as pass-through entities now face significantly higher combined marginal rates than America’s largest publicly traded corporations, in some cases by as much as 25 percent. In addition to high statutory rates, the majority of small businesses, who lack the accounting resources of large corporations, spend more than 40 hours per year just to
prepare their taxes.
“The construction industry has historically paid the highest effective rate of any sector and these additional tax hikes and phase-outs will only exacerbate the burden our members face,” said ABC Vice President of Government Affairs Geoff Burr. “Last year’s deal to extend the bulk of the Bush-era tax rates lent needed certainty to many taxpayers, but unfortunately also opened up a wide gap between Main Street and the Fortune 500. We look forward to working with members of Congress to enact comprehensive reform that will provide for fair taxation irrespective of business size, structure or sector.”
Associated Builders and Contractors (ABC) is a national construction industry trade association representing nearly 21,000 chapter members. Founded on the merit shop philosophy, ABC and its 70 chapters help members develop people, win work and deliver that work safely, ethically, profitably and for the betterment of the communities in which ABC and its members work. Visit us at www.abc.org
Contact: Jeff Leieritz (202) 905-2104