Masonry Magazine August 1993 Page. 5
FROM THE PRESIDENT
RECENTLY, MCAA'S Executive Director Mike Adelizzi and I attended a legislative conference in Washington, D.C., along with some 150 other members of the Associated Specialty Contractors who came from all over the U.S. to meet with their elected officials. Recognizing that today's legislative issues might be tomorrow's law, they came to the nation's capital to discuss issues such as OSHA reform, prompt payment for federally assisted projects, infrastructure investment and striker replacement.
This year the conference focused on changes from the new administration as well as the major issues generated in the first session of the 103rd Congress. Many of the leading members and key Congressional staff people from the House and Senate made informative presentations. Officials from the Clinton Administration outlined the President's agenda to a select group representing ASC.
Addressing the conference was Senator Lauch Faircloth of North Carolina and Senator Robert Dole of Kansas. Representatives Dan Hamburg of California and John Boehner of Ohio also addressed the attendees.
Each afternoon attendees had appointments with Senators and Representatives from their own states so they could communicate their position to Congress on all issues, including the President's proposed budget and tax package.
There has been a lot of focus on the budget, but no one knows whether or not this plan will cut the federal deficit. One thing is clear-its impact on MCAA members will be a double-tax whammy.
First, the alternative minimum tax would be raised from 24 to 26 percent for individuals earning over $175,000. The wage cap on the hospital insurance section of FICA would also be eliminated, raising the tax rate for the self-employed owners earning more than $140.000.
Second, the increase in marginal income tax rates increases from 31 to 36 percent and higher. Even sole proprietorship and Subchapter "S" corporations would be affected by these tax hikes. Also included are the energy (BTU) tax and the increased corporate taxes.
You can be sure that material suppliers will pass along their tax hikes to their customers. All current projects under contract may have unexpected increased costs.
Put this along with the health care plan being formulated for the employer's share, and it adds up to the biggest tax increase in history.
Add this to the apparent confusion in the White House, it's tough to plan amid a hodgepodge of solutions. A BTU tax one day, value-added tax the next, and now a payroll tax of 7 percent for health insurance-possibly have all of these adding to your business expense on top of the insurance you already have.
By the time you read this, the striker replacement bill may be law. If you're like me and trying to piece all this together, you may be reconsidering your future plans. The investment tax credit that was being considered will probably be eliminated; the corporate tax rate will be going to somewhere between 36 and 39 percent.
We are not the only ones drastically affected by these exorbinant tax hits. Our employees and their families will