Capitol Hill has been abuzz about reforming the broken U.S. tax system. During the past few years, the Senate Finance Committee and House Ways and Means Committee have held 50 hearings gathering information and testimony to help them overhaul the tax code. Both committees have reached a critical point in the process, but timing and political ramifications could make tax reform difficult to accomplish in the 113th Congress.
NRCA believes lowering tax rates for all businesses will help drive economic growth, create jobs and make the U.S. more competitive. With 75 percent of NRCA members organized as pass-through businesses that pay their business taxes on individual tax returns, it is imperative any tax reform proposal lowers individual and corporate tax rates.
Currently, individuals pay a top tax rate of 39.6 percent; this does not include other targeted taxes on high-income earners that could reach up to 50 percent in some states. Corporations have a tax burden of 35 percent, the highest corporate tax rate in the global economy. Construction businesses are unable to take advantage of many tax expenditures that help lower their tax burdens, causing them to face one of the highest effective tax rates at 31 percent.