In December 2010, President Obama and Congress negotiated an $858 billion compromise tax bill that temporarily extended lower tax rates and numerous expiring tax credits of importance to businesses. Although the tax bill's enactment is highly significant, because of its limited duration, it is only a stop-gap measure. In fact, the battle over taxes will continue this year and in the future with significant implications for roofing contractors and other employers.
A temporary extension
In recent years, NRCA steadfastly has supported permanent extension of lower, pro-growth tax rates enacted in 2001 and 2003 as vital to restoring strong economic growth in the construction industry.
Although the bipartisan tax bill fell short of permanently extending low tax rates, NRCA supported it as a short-term compromise necessary to provide stability and certainty for businesses during the next two years. With Congress failing to take action until only days before the looming expiration of the tax rates, a temporary extension was the only feasible political solution to avert massive tax increases scheduled to take effect Jan. 1, 2011, for all taxpayers.