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,
theAssociated General Contractors of Americabelieves the elimination of those
tax cuts will have “a significant impact on the construction industry in
particular and the economy in general.”
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," saidStephen E. Sandherr,
CEO of AGC. "With a precarious economy, it is time for Congress make the
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.”
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.