President Obama recently reaffirmed his support for tax reform that reduces tax rates for corporations only. His proposal would drop the corporate tax rate to 25 percent for manufacturers and 28 percent for all other C-corporations. 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.
Unfortunately, the president's proposal does nothing for those businesses, including many roofing contractors that pay their business income taxes at the individual level. The proposal also 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.
NRCA supports Senate Finance Committee Chair Max Baucus (D-Mont.) and House Ways and Means Committee Chair Dave Camp (R-Mich.) in their efforts to enact comprehensive tax reform that lowers taxes for all types of businesses. NRCA will continue to work with members of Congress to convey the unique views of roofing contractors and how tax reform will affect their businesses.