Tax & Fiscal Policy

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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.

Tax Relief & Fiscal Responsibility
ABC's Tax Bill
Estate Tax
Health Care
Compliance
Recent Victories

New Website Seeks Feedback from Public on Tax Reform

Rep. Dave Camp (R-Mich.) and Sen. Max Baucus (D-Mont.) May 9 launched a new website, taxreform.gov, and a Twitter feed,@simplertaxes, to gather feedback from the public on tax reform.

Tax Committee Report Singles out ABC’s Proposal for CCM

The Joint Committee on Taxation May 6 released a report summarizing the findings and comments obtained from 11 working groups that were formed by the tax-writing Ways and Means Committee related to tax reform. The report is a part of an effort to overhaul the U.S. tax code.

Top Priorities for Tax Reform: Parity, Simplicity and Certainty

ABC April 15 sent a letter to the U.S. House of Representatives Ways and Means Committee Tax Reform Working Group on Small Business outlining its top priorities for comprehensive tax reform. In the letter, ABC listed its broader priorities for reforming the tax system as parity, simplicity and certainty.

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The American Job Builders Tax Reform Act

Under current law, construction contractors cannot use the completed contract method (CCM) of accounting if average annual gross receipts exceed $10 million, which has not been adjusted for inflation since 1986. H.R. 1993 would increase the threshold to $40 million and would index the threshold for inflation. Adjusting this threshold for inflation would allow more than 90 percent of ABC members that are small businesses to utilize CCM.

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Groups Continue to Support Bill to Repeal Health Insurance Tax

The Stop the HIT Coalition, of which ABC is a member, March 19 sent a letter to members of the U.S. Senate offering support for the Jobs and Premium Protection Act of 2013, introduced by Sen. John Barrasso and Sen. Orrin Hatch, that would repeal the health insurance tax provisions in the Patient Protection and Affordable Care Act.

ABC Calls Attention to New Taxes in Health Care Law

In response to a U.S. House of Representatives subcommittee hearing on the tax provisions contained in the Patient Protection and Affordable Care Act (PPACA), ABC sent a letter that called attention to several provisions that will affect ABC members, including the additional Medicare taxes on wages and investment.

ABC Applauds Bill That Would Repeal the Health Insurance Tax

As part of the Stop the HIT Coalition, ABC Feb. 15 applauded the introduction of the Jobs and Premium Protection Act of 2013, a bill that would repeal the health insurance tax (HIT) provisions in the Patient Protection and Affordable Care Act (PPACA).

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Legislation Seeks to Repeal IC "Safe Harbor Provision"

In the 111th Congress, Representative Jim McDermott D-WA) introduced the Taxpayer Responsibility, Accountability, and Consistency Act of 2009 (H.R. 3408) and Senator John Kerry (D-MA) introduced the Senate companion bill, S. 2882. Both H.R. 3408/S. 2882 seeks to repeal Section 530 of the Revenue Act of 1978, a safe-harbor provision that protects qualifying taxpayers against the Internal Revenue Service reclassifying covered workers as employees for federal employment tax purposes.

Independent Contractor Reform

ABC supports preservation of Section 530. Attempts to repeal it will place uncertainty and new overhead in front of entrepreneurship, with the heaviest burdens falling on the low-capital start-ups from which many successful small businesses originate.

1099 Reporting Requirement

In a victory for merit shop construction and businesses nationwide, the expanded 1099 tax reporting requirements included in the Patient Protection and Affordable Care Act were repealed April 14 when President Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (H.R. 4).

Three Percent Witholding

In November of 2011, Congress unanimously passed ABC-supported legislation to repeal Section 511 and its withholding mandate, culminating five years of hard work by ABC and its coalition partners.

Associated Builders and Contractors (ABC) is a national trade association representing 22,000 members from more than 19,000 construction and industry-related firms. Founded on the merit shop philosophy, ABC and its 72 chapters help members win work and deliver that work safely, ethically and profitably for the betterment of the communities in which they work.

Small Business Tax Relief