Mike Clancy, Cynthia Paul, FMI Corporation
Contractors’ get work departments can be like a car with a bad alignment. While everyone is working hard to get where they want to go, some of the effort is being pulled toward the “ditch” of low hit rates, missed opportunities and undeveloped client relationships. All that is needed are a few key adjustments to win your fair share of work.
Today, Ҵýapp sent a comprehensive comment letter to the IRS in advance of the July 14 public hearing. The letter offered recommendations that would curtail the proposed regulation’s effects on domestic construction companies. The letter is in addition to the comments sent last week asking for a withdrawal of the rules and, at a minimum, an extension of the public comment period and study of the regulations on industries. Visit Ҵýapp’s Action Center and urge your members of Congress to oppose the 385 regulations in their current form.
On Tuesday, the Senate Finance Committee held a hearing on ways Congress could reform the business tax code to make it more globally competitive and to consider the findings of the Committee’s bipartisan business income tax working group. Members also discussed anticipated discussion drafts on corporate integration and cost recovery reform from leaders of the committee. Ҵýapp has been actively involved in vetting the discussion drafts with both the committee’s majority and minority staff. Ҵýapp will continue to monitor these legislative proposals that have the aim to provide clarity, simplicity and certainty for construction firms.
On Wednesday, the House Ways and Means Subcommittee on Tax Policy held its second hearing on reform America’s tax code. At the hearing, Congressmen Bob Goodlatte (R-Va.) and Roger Williams (R-Texas) presented legislative proposals to reform the income-tax system so that it is fairer and simpler for taxpayers. Ҵýapp will continue to monitor these legislative proposals and promote reforms that provide clarity, simplicity and certainty for construction firms.
President Obama pushed for tax reform today, urging Congress to close corporate loopholes that allow firms to legally avoid paying taxes. The president’s plan, however, would not lower the individual tax rate, which a majority of Ҵýapp members use to file their taxes as pass-through entities. Ҵýapp continues to meet with key congressional decision-makers and staff to advocate for comprehensive changes to the tax code that lowers the rates for all business types, reduces the effective tax rate on construction companies, simplifies the tax code and uses reform as an opportunity to shore up infrastructure trust funds and expand infrastructure incentives.
President Obama pushed for tax reform today, urging Congress to close corporate loopholes that allow firms to legally avoid paying taxes. The president’s plan, however, would not lower the individual tax rate, which a majority of Ҵýapp members use to file their taxes as pass-through entities. Ҵýapp continues to meet with key congressional decision-makers and staff to advocate for comprehensive changes to the tax code that lowers the rates for all business types, reduces the effective tax rate on construction companies, simplifies the tax code and uses reform as an opportunity to shore up infrastructure trust funds and expand infrastructure incentives.
House Ways and Means Committee Chairman Kevin Brady (R-Texas) addressed Ҵýapp’s Highway and Transportation Division during Ҵýapp’s 97th Annual Convention in San Antonio, Texas. Chairman Brady’s committee is responsible for tax issues in the House including Highway Trust Fund motor fuel tax revenue. He said he was pleased that Congress was able to find sufficient revenue last year to fund the FAST Act for the next five years but he believes we need to get back to a user fee-based revenue source. He reported that transportation committee chairman Bill Shuster (R-Pa.) is organizing a summit of key House members and outside stakeholders to discuss the best route to a long-term, sustainable solution.
The Ҵýapp Financial Issues Committee Summer Meeting is scheduled for June 13-14, 2016 in Washington, DC. Meeting and hotel information is available on the meeting’s site and Early-Bird registration opened this afternoon. CEOs, Owners, CFOs, Tax Directors and other accounting professionals will have an opportunity to hear from influential Members of Congress, FASB representatives, peers on CFO topics and senior CPA consultants regarding current and future tax and accounting issues as well as, Ҵýapps Chief Economist about the outlook for Q4 & 2017 as well government affairs staff readout of the political party candidates and conventions.
On Tuesday, the House Ways and Means Committee convened the panel’s first hearing of the year, which focused on “pro-growth policies” and views expressed by thought leaders in DC-based think tanks. Chairman Kevin Brady (R-Texas) noted his panel will be drafting international tax legislation over the next few months to address corporate inversions. Chairman Brady added that a timeline and details have not yet been decided, and that drafting will begin in the Tax Policy subcommittee led by Rep. Charles Boustany (R-La.).
On Thursday, the House passed the Protecting Americans from Tax Hikes (PATH) Act of 2015 by a 318 to 109 vote, with three republicans voting against the measure and 77 democrats in favor. The PATH Act renews all expired provisions in some form. The bill makes certain tax incentives permanent, while proposing a two-year extension for others, and providing a one-year retrospective for 2015 and one-year prospective for 2016 for the remaining provisions. The Senate will receive the bill and likely vote on Friday, sending the tax package to the president’s desk – which he is expected to sign. To view a copy of the legislative text click here. Specifically the tax extender package includes the following Ҵýapp priorities: