AGC Founding Member of Tax Coalition on Effective Rates

The Coalition for Fair Effective Tax Rates officially launched this week. The focus of the group is to persuade lawmakers, opinion leaders and the public to view tax reform through the lens of effective tax rates, the amount in taxes that businesses actually pay. Coalition members plan to ask members of Congress and administration officials to use effective tax rates as a leading metric – and a key measure of success – as tax reform develops on Capitol Hill. Its members hope effective-tax-rate comparisons will bolster legislation that broadens the tax base while lowering rates for corporations, as well as pass-through businesses. The construction industry pays one of the highest effective corporate tax rates at 31 percent; more than double the rate some sectors pay. Members also want to impress upon lawmakers and key stakeholders that high effective tax rates have negative consequences for American businesses and the overall economy. The coalition will take no position on any tax preference or provision. Instead, it plans to concentrate on the benefits of viewing tax reform through the lens of effective tax rates with the goal of creating a fair, neutral playing field across all industries and business sectors. The coalition – collectively representing about 500,000 businesses – is a diverse organization whose members include a wide range of businesses from large corporations paying corporate rates, to small mom-and-pop shops paying individual tax rates. All agree with the tax-writing committee chairmen on Capitol Hill that the federal tax code is broken and comprehensive tax reform is needed. Eliminating tax preferences will allow lawmakers to lower corporate and individual tax rates to promote economic growth and job creation. The coalition’s management committee members are the Associated General Contractors of America, Associated Builders and Contractors, International Foodservice Distributors Association, International Franchise Association, National Association of Wholesaler-Distributors, National Federation of Independent Business, Retail Industry Leaders Association, S Corporation Association and Small Business & Entrepreneurship Council, plus an additional 48 national organizations on the steering committee and nearly 100 general members. To demonstrate the support of the business community –including builders and contractors – AGC has worked with the fellow management committee members to attract numerous business organizations. AGS is encouraging its chapters to join as general members of the coalition. Visit the coalition’s website: http://www.FairEffectiveTaxRates.com or follow the coalition on Twitter @EffectiveRate and on Facebook. For more information, please contact Brian Lenihan at (202) 547-4733 or lenihanb@agc.org.