Tax & Fiscal Policy

The overwhelming majority of construction businesses are organized as pass-through entities, meaning that their income is taxed at the individual level. These job-creating small and medium-sized businesses would bear the brunt of higher marginal tax rates, wealth surcharges, and corporate-only attempts to reform or alter the code.

ABC Opposes IRS Reporting Proposal

On Oct. 14, ABC joined more than 100 associations in a letter to leaders in the U.S. Senate and House of Representatives opposing a proposed tax information reporting requirement that would have an impact on many ABC contractors and nearly all small businesses in America with a bank account.

ABC Calls for Section 199A Permanence for Small Businesses

On June 22, ABC joined more than 100 trade associations to support the Main Street Tax Certainty Act (H.R. 1381/S. 480) and to oppose potential legislation from Sen. Ron Wyden (D-Ore.) that would weaken the Section 199A pass-through deduction. The Main Street Tax Certainty Act would make permanent the current 20% deduction for small and family-owned businesses, provided through Section 199A of the Tax Cuts and Jobs Act of 2017.

Biden Infrastructure Plan Rife With ABC-opposed Labor Policies

On March 31, the Biden administration released a more than $2 trillion infrastructure outline titled the “American Jobs Plan.” While the plan calls for federal spending over the next eight years to improve the nation’s infrastructure, including for transportation, broadband, energy, and drinking water, it also includes funding for schools and child-car

President Trump’s Deferral of Payroll Tax Goes Into Effect; Guidance Issued

On Tuesday, Sept. 1, President Trump’s memorandum deferring payroll tax obligations went into effect. This memorandum allows for the deferral of the employee portion of federal payroll taxes — 6.2% for social security and 1.45% for Medicare — from Sept. 1, 2020, until Dec. 31, 2020, for workers earning less than $4,000 on a biweekly basis or $104,000 annually.

ABC Objects to HEROES Act Tax Hike for Small Construction Businesses

As part of the Parity for Main Street Employers coalition, ABC opposed a proposal from Democrats in the U.S. House of Representatives that would raise taxes on small construction businesses through the repeal of the bipartisan-supported net operating loss carryback and loss limitation provisions previously included in the CARES Act.

IRS Issues Additional Tax Cuts and Jobs Act Guidance

Over the last month, the U.S. Department of Treasury and Internal Revenue Service have issued several proposed rules that provide guidance and implement changes to the tax code under the Tax Cuts and Jobs Act. Signed into law nearly a year ago, the historic tax reform bill included several key provisions that affect the construction industry, and the recently issued proposals provide critical information for construction employers on how to comply with the law.

ABC Celebrates Passage of Historic Tax Reform Bill

Associated Builders and Contractors (ABC) President and CEO Michael D. Bellaman released the following statement after Congress passed The Tax Cuts and Jobs Act:

“This is a historic day for the construction industry. For too long, ABC’s 21,000-plus members have paid the highest effective tax rate of any sector of the economy. We are a capital-intensive, cash-flow challenged, domestically oriented industry comprised mostly of small, family owned and closely held merit shop construction companies employing hardworking Americans. Our members have waited for Washington to let them keep more money in their paychecks, which would enable them to invest

House Names Conferees to Reconcile Tax Reform Legislation

The U.S. Senate passed sweeping tax reform legislation on Dec. 2, overcoming a number of setbacks over the course of a long week. The effort to win over holdouts and cobble together the necessary votes led to a number of late-breaking changes to the bill, culminating in what was essentially a party line vote, with Senator Bob Corker (R-Tenn.) as the only dissenting Republican.

Tax Reform Bill Advances in U.S. Senate

On Nov. 28, The Senate Budget Committee voted to advance S.1, the Tax Cuts and Jobs Act on a party line vote of 11-10. Senators Ron Johnson (R-Wis.) and Bob Corker (R-Tenn.) voted to send the bill to the Senate floor after originally withholding their support.

President Trump Highlights Benefits of Business Tax Cuts in Mo. Speech

On Nov. 29, President Trump delivered a strong defense of reducing the tax burden on businesses of all sizes in his “Bring Back Main Street” Speech in St. Charles, Mo. He urged Congress to push tax reform across the finish line as the U.S. Senate is expected to vote on their version of the Tax Cuts and Jobs Act this week.