Congress Postpones Jobs Measure

The House postponed a vote this week on a bill that would extend various expired tax provisions, unemployment and health care programs, and infrastructure initiatives as part of the Democratic Congress' jobs agenda.  The American Jobs and Closing Tax Loopholes Act, H.R. 4213, would include a number of provisions of benefit to the construction industry, including extension of the Build America Bonds program, lifting of the cap for water infrastructure projects financed through private activity bonds, and multi-employer pension plan funding relief.  However, the bill comes at a cost to the industry as well.  To offset the cost of the tax provisions, the bill would change the way carried interest profits are taxed, by taxing them at the higher ordinary income rates rather than at the lower capital gains rate, a move that would further hurt the struggling real estate development community.  The bill would also impose employment taxes on all income earned by service professionals who are also shareholders of an S corporation.  AGC is evaluating the legislation and its impact on the construction industry and working with Congress to find ways to be able to fully support the bill.