S Corp. Tax Hike Would Hurt Job Growth in Construction Sector Just As Nascent Recovery Takes Hold
Washington, D.C. – April 25, 2012 – (RealEstateRama) — The American Institute of Architects (AIA) today announced its opposition to a Senate proposal to hike taxes on small businesses who file as so-called Subchapter S Corporations, many of whom are architects.
The S Corp. tax hike proposal has surfaced as part of an effort to find replacement revenue for money lost to the federal government if Congress keeps the current 3.4% student loan interest rate, which is set to increase to 6.4% on July 1. The AIA earlier today expressed support for efforts to reduce student debt burdens.
The following statement should be attributed to AIA EVP/Chief Executive Officer Robert Ivy, FAIA:
“It just makes no sense whatsoever to raise taxes on job creators in a bill that’s ostensibly designed to help young people who are looking for jobs in their chosen profession.
“Since many of our members work for firms with three or fewer employees, this proposal could force architects to lay off staff or stop hiring new staff to pay the new tax. If we’re trying to make it easier for our college graduates to get started in their career and become contributing members of society, increasing taxes on those who would most likely hire them is simply bad public policy.
“This proposal is targeted at individuals who form as S corporations to avoid paying payroll taxes, but it would invariably entrap legitimate S corporations who follow the letter and spirit of the law.”
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. Members adhere to a code of ethics and professional conduct to ensure the highest standards in professional practice. Embracing their responsibility to serve society, AIA members engage civic and government leaders and the public in helping find needed solutions to pressing issues facing our communities, institutions, nation and world. Visit www.aia.org.