Opposition to the 3% Withholding Tax Continues to Grow
As discussed in previous articles on this blog, there is a strong opposition to the 3%Withholding Tax that will be levied against all contractors who provide goods or services to federal, state, and local governmental agencies with expenditures of $100 million or more.
There have been a number of construction trade associations and coalitions, such as the Associated Builders and Contractors , The Associated General Contractors of America, and The Quality Construction Alliance that have voiced their concerns and opposition. All of these agencies have encouraged their members and supporters to back pending legislation in the House of Representatives and the Senate to repeal this tax. The current measures are H.R. 674, S.89 and S. 164. Continue reading »
Construction Spending Unexpectedly Increases In August
The roller coaster ride of 2011 continues for the construction industry. Following a 1.1% decrease in July, construction spending saw an unexpected increase in the month of August for nonresidential construction spending of 1.6% compared to the previous month. This is based on the U.S. Census Bureau’s press release. McGraw Hill Construction also reported an 8% increase in construction spending starts versus a 10% decline in July in their most recent report.
The good news was also seen in the employment spectrum according to The Associated General Contractors of America (AGC). AGC stated in their press release that construction employers added 26,000 jobs during the months of August and September. This increase brought the current unemployment level for the industry to 13.3% but AGC cautioned that some of the recent declines in the unemployment rate were a result of construction workers leaving the industry all together.
Based on the statistics that have been released over the past 3 months it is hard to gauge whether the industry has begun to stabilize or not. These mixed economic signals may be frustrating for contractors attempting to prepare budgets or who are considering hiring additional employees for the future. Continue reading »
