NRCA issues statement regarding tax reform

President Obama recently reaffirmed his support for tax reform that reduces tax rates for corporations only. To achieve these lower corporate rates, the president’s plan would broaden the tax base, eliminating many tax credits and deductions that large and small businesses use to reduce their tax liability.

The proposal would create a larger disparity between corporate and individual tax rates that will stifle economic growth, which is desperately needed in this sluggish economy. Moreover, a study by Ernst & Young, New York, found that enacting “corporate-only” tax reform would result in a 9 percent, or $2.3 billion, tax increase on construction companies.

(From NRCA)