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 »
Will the American Jobs Act Create Jobs For the Construction Industry?
There is an awful lot going on within the construction industry these days on all fronts, but the one glaring issue facing the industry is the heightened unemployment levels as a result of the prolonged construction recession. The current unemployment level for the construction industry as of August 2011 is 13.5% which is almost 5% higher than the national average covering all sectors.
With the health of the U.S. Economy on the verge of a recessionary relapse the President delivered to the country a speech on September 8, 2011 in which he proposed the “American Jobs Act”. The Act includes the following which will directly impact the construction industry: Continue reading »
Construction Spending Decreases in July
So far 2011 has been a rollercoaster year for the Construction Industry as a whole. Most recently the industry saw a spending increase in June to hit a 6-month high, only to see the most recent economic data suggest a sizable decrease in spending in July. According to McGraw-Hill Construction, there was a 10% decrease in July construction starts compared to a 15% gain in June as revealed in their article. Contradictory to this, The Associated Builders and Contractors (ABC) released their Construction Backlog Indicator which appeared to present improved data in that backlog had increased 10% in the 2nd Quarter of 2011. Continue reading »
ABC Suggests Several Changes on the 3% Withholding Tax
As previously written in this blog, the 3% Withholding Tax is a proposed tax that will be levied against all payments for goods or services from federal, state, and local governments with total expenditures of $100 million beginning January 1, 2013.
The Associated Builders and Contractors (ABC), a national industry trade association, has suggested several changes in a letter to the IRS on August 8, 2011 as released in their recent news letter. To read ABC’s comments to the IRS please visit their newsletter on the ABC website.
