AGC of America: Tax-reform plan improved but more help for pass-through entities needed
The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in connection with the Senate tax reform measure:
"The association has long advocated for comprehensive tax reform, especially considering that construction employers pay the highest effective rate of any industry at 30.3 percent. The Senate tax-reform bill has been substantially improved over the course of the past few days, and we support its passage.
"It is important to note that most construction firms are organized as pass-through entities, such as S corporations and partnerships that are taxed at personal rather than corporate tax rates. While the Senate proposal has wisely increased the pass-through deduction from 17.4 percent to 23 percent, the fact that the cut is temporary is concerning. We also remain disappointed that infrastructure was largely overlooked in the tax-reform process. This is a missed opportunity.
"Assuming the tax-reform legislation moves to a House-Senate conference committee, the association and its 26,000 member firms will continue to advocate for permanent changes to the tax code that benefit the majority of small- and medium-sized construction firms that pay taxes as pass-through entities. And we will continue to push Congress and the administration to work together to swiftly enact measures to increase investments needed to improve our aging and over-burdened infrastructure."