Latest News / Operations & Technology

Looming Tax Increases Unsettle Construction Industry

June 4, 2008
/ Print / Reprints /
ShareMore
/ Text Size+
Without Congressional action the tax cuts enacted in 2001 and 2003 will expire in 2011, including the Death Tax and 3% withholding tax.

Without Congressional action the tax cuts enacted in 2001 and 2003 will expire in 2011. In a recent release, the Associated General Contractors of America believes the elimination of those tax cuts will have “a significant impact on the construction industry in particular and the economy in general.”

"In 2001 and 2003, Congress made the right decision to join with the President and lower the tax burden on our nation's businesses to stop a recession and keep the country moving forward," said Stephen E. Sandherr, CEO of AGC. "With a precarious economy, it is time for Congress make the cuts permanent."

Tax rates are scheduled to go up, including the pass-through entities such as partnerships and "S" corporations, which make up most businesses in the construction industry.

Also, the Death Tax jumps to a rate of 55 percent in 2011, while the impending enactment of 3 percent withholding on public works contracts will devastate construction businesses, which on average make 2.4 percent per contract, according to AGC. More than 60 percent of construction companies that file their business taxes at the individual level will see the marginal tax increases raise taxes up to 5 percent in 2011. AGC feels the sharp rise in the Death Tax ― from zero in 2010 to 55 percent in 2011 - will “take the life out of many small and medium sized companies.”

“Owners will be forced to take their focus off their businesses and instead focus on ways to save their companies for future generations and their current work force,” AGC stated. "Congress should permanently implement the Bush tax cuts and repeal the hazardous 3 percent withholding before it's too late," added Sandherr.

Did you enjoy this article? Click here to subscribe to Supply House Times.
You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

BNP Media's Plumbing Group Visits Grundfos North American Headquarters

BNP Media’s Plumbing Group, comprised of the Plumbing & Mechanical, Supply House Times, PM Engineer (pme) and Reeves Journal brands, recently visited Grundfos’ new North American headquarters building in the western Chicago suburb of Downers Grove, Ill.

8/26/14 1:00 pm EST

Free Webinar: Low Temperature Heat Emitter Options in Hydronic Systems

With proper design, you can create systems that require supply water temperatures no higher than 120° F under design load conditions.

Supply House Times

July 2014

2014 July

In the July issue of Supply House Times, find out who has been appointed as Southern Wholesalers Association's new president. Milwaukee Valve showcases its operations to the Newport News Shipbuilding, Robertson Heating Supply hits a milestone as they celebrate their 80th year in business. Read about the 12th annual training day led by Security Supply, find out who has acquired several Kohler store locations. Also check out the latest products and news for the distribution industry.
Table Of Contents Subscribe

Supply House Times Poll

Industry News Access

What’s your favorite electronic device to access industry news?
View Results Poll Archive

The Supply House Times Store

plumbing-hvac.gif
2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research

CS-OflRGBhomepage.jpgWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Premier 125

Premier 125 button

The information SUPPLY HOUSE TIMES uses to rank the Premier 125 is the most accurate we can gather. It is primarily based on responses to a questionnaire we send to the wholesalers in our database, supplemented with information obtained from industry reports and estimates.

STAY CONNECTED

facebook Twitter Updated icon Youtube Updated icon    LinkedIn Updated icon  Google+