The Coalition for Fair Effective Tax Rates was launched to ensure comprehensive tax reform efforts focus on lowering the effective corporate tax rates. Comprised of a number of national, state and local organizations, including many in the construction industry, the coalition will work toward lowering the total federal taxes that firms pay.
In a statement, Stephen E. Sandherr, CEO of the Associate General Contractors of America (AGC), said, “The launch of this new coalition will help bring needed tax relief to a construction sector that currently pays the highest effective corporate tax rate of any industry type. That relief can't come soon enough as the hard-hit construction industry pays an effective corporate tax rate of 31 percent, the highest level in the economy and more than double the rate some sectors pay, according to the most recent analysis by the U.S. Department of the Treasury.
"Given federal officials' repeated insistence on wanting to put in place policies to boost employment levels, it is hard to understand why our tax policies discriminate against the labor-intensive construction industry. Fortunately, members of Congress have an opportunity to address the disparity among effective rates as they undertake broader, comprehensive tax reform. These reform efforts need to focus on, and ultimately lower, the effective corporate tax rate employers actually pay, instead of the ostensible, pre-deductions, corporate rate that is so often cited.”
Sandherr also indicated that AGC intends to work to educate federal officials about the tax burden on construction employers and to promote tax relief in the construction sector to boost employment.