As Congress and the Administration work toward their mutual goal of passing comprehensive tax reform and a new infrastructure initiative, AGC continues to make the case to leaders on Capitol Hill that rebuilding our nation’s infrastructure and reforming our outdated tax code should go hand-in-hand.  Many Republicans and Democrats in Congress agree that combining tax and infrastructure reform into one package makes perfect sense.  In fact, members of both parties in the House of Representatives sent President Trump a letter earlier this year expressing their support in pursuing an infrastructure and tax reform package, saying “comprehensive tax reform could free up significant capital for infrastructure as well as other investments enabling businesses large and small to invent, innovate and hire.
AGC continues to advocate for reforms to the tax code that would benefit the construction industry, and recently sent a letter to the Senate Finance Committee outlining those priorities.  But, including infrastructure in tax reform would have a positive impact on economic growth in the short and long term.  In the short term, a recent report by the Congressional Budget Office noted, every dollar invested in infrastructure, on average, generates as much as $2.50 in incremental output over the following six quarters.  This is the highest multiplier among all major Federal spending programs or from tax cuts to individuals and businesses.  In the long-term, infrastructure investments can boost our economy by creating significantly more new and high-paying jobs in construction and related fields.  These investments will also make businesses more competitive by reducing shipping, commuting, water and energy costs.
At AGC’s upcoming National Chapter Leader Conference (NCLC) – September 24-26 – participants will be going to Capitol Hill to make the case that infrastructure investment should be a part of tax reform.  Among AGC’s infrastructure priorities are to find a permanent fix for the Highway Trust Fund, maintain the tax exempt status of municipal bonds, ensure and expand the use of Private Activity Bonds, establish a Clean Water Trust Fund, increase funding for airport infrastructure, and make better use of federal buildings and property.
For more information, contact Sean O’Neill at [email protected] or (202) 547-8892.