Printer Friendly


 /ADVANCE/ WASHINGTON, Aug. 4 /PRNewswire/ -- Charles E. Hawkins III, Associated Builders and Contractors (ABC) senior vice president, issued the following statement:
 Associated Builders and Contractors and its 16,000 contractor members stand in complete agreement with the groups you see here today opposing the budget reconciliation package.
 Above all else, our opposition derives from our firmly held belief that this package essentially is a job killer.
 These new taxes will weigh heavily on contractors, the overwhelming majority of which are small businesses -- far and away the economy's greatest producers of new jobs.
 These new high tax rates, which on the surface may appear to only affect those in high income brackets, would have a direct and adverse impact on small businesses, which typically file under S-Corporation status.
 A recent survey conducted by the Joint Economic Committee revealed that 65.7 percent of taxpayers with adjusted gross incomes of more than $200,000 are small business owners and file under partnerships or Subchapter S status.
 The S-Corp status allows businesses and their investors to be taxed directly on corporate profits. And since the Internal Revenue Service treats Subchapter S-Corporations revenue the same as it does personal income, an increase in the tax rate to 36 percent means that there will be less money available to spend on new jobs, wage increases or expansion investment.
 A vote for this package is a vote against job creation.
 ABC is also opposed to using the gas tax for deficit reduction. As users and builders of our nation's roads and bridges, we strongly believe that transportation taxes should be used for the intended purpose -- to build and to maintain the infrastructure. A transportation deficit reduction tax threatens present and future infrastructure programs while undermining each state's ability to raise much needed funds for local infrastructure. By investing in the infrastructure, we are investing in America's future, not to mention creating much needed jobs.
 Once again, we are talking about a budget reconciliation package which will kill the creation of new jobs.
 And finally, ABC finds the proposal to eliminate the deduction for lobbying expenses ill-conceived. Congress may be looking to tap special interests as a revenue source -- however, everyone is a potential special interest.
 Such a move will serve only to silence the millions of small businesses which depend on national, state or regional associations to represent them in their legislatures. This measure will effectively shut out the many constituencies which may be large in number but are limited in resources of time, knowledge and money.
 Associated Builders and Contractors is a national construction organization representing 16,000 merit (open) shop construction and construction-related firms in 80 chapters across the United States.
 -0- 8/4/93/1130
 /NOTE TO EDITORS: A press conference will be held today at 11:30 a.m., Rm. 385, The Senate Russell Building, Constitution and Delaware avenues N.E., Washington./
 /CONTACT: Dick Haas or Mike Henderson of the Associated Builders and Contractors, 703-812-2000/

CO: Associated Builders and Contractors ST: District of Columbia IN: CST SU: EXE

IH-TW -- DC005 -- 9294 08/04/93 10:48 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Aug 4, 1993

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters