National ABC notes positive impact of tax reform on construction industry

THE LEADERSHIP of Tucker Paving, Inc., is pleased and proud to have the company as a member of the ABC Central Florida Chapter. ABC is short for Associated Builders and Contractors, Inc. ABC Central Florida is an affiliate of ABC of Florida, which, in turn, is an affiliate of the national ABC organization. Active support and involvement with ABC Central Florida has earned Tucker Paving the status of 2018 Elite VIP Sponsor.

As noted in previous blog articles here, ABC is the voice of commercial construction in Florida and throughout the land. “Founded on the merit shop philosophy, ABC helps members develop people, win work, and deliver that work safely, ethically, profitably and for the betterment of the communities in which ABC and its members work. … ABC is the industry advocate in Tallahassee and Washington,” ABC of Central Florida states on its website.

On a national level, ABC often prepares news releases for use by the print, broadcast and digital media. An April 17 “Tax Day” release from Washington had some very positive news, which we’re happy to summarize and spread here, on our blog site. The title was “Tax Reform Enables ABC Members to Hire and Train More Construction Industry Workers.”

“As a result of the Tax Cuts and Jobs Act passed in December 2017, 55 percent of Associated Builders and Contractors (ABC) contractor members plan to hire more employees, and 52 percent plan to invest in workforce development, according to a recent poll. In addition, 90 percent of member companies say employees have seen an increase in their paychecks,” the release stated.

“This Tax Day, we are celebrating the positive results of the first reform of the tax code in decades — one that will unlock the full economic potential of ABC’s 21,000 members,” said Michael Bellaman, national president and CEO of ABC. “Our members are grateful to Congress and the Trump administration for reduced tax rates on C-corps and pass-throughs, higher exemptions for small businesses, the repeal of corporate AMT (alternative minimum tax) and the elimination of the ACA (Affordable Care Act) individual mandate.”

The release further stated: “As capital-intensive, low-margin, domestically oriented businesses comprised largely of small, family-owned and closely held merit shop construction firms, ABC members feel the positive effects of tax reform.”

In past years, the tax burden on builder and contractor companies has been disproportionately heavy, the release stated. “According to analysis by the U.S. Department of Treasury, the construction industry paid the highest effective tax rate of any sector of the nation’s economy — 27 percent, compared to an average of 22 percent for other industries — from 2007 to 2011.”