The National Electrical Contractors Association (NECA) today joined with 100 fellow organizations to establish the Coalition for Fair Effective Tax Rates. The coalition will help deliver a united message calling on Congress to view tax reform through the lens of effective tax rates, the amount of taxes actually paid by businesses. Comprehensive tax reform has long been a legislative priority for NECA. Electrical contractors, much like the rest of the construction industry, pay the highest effective tax rates.
“NECA is pleased to join in the Coalition’s efforts to work for lowering effective corporate tax rates,” said Marco Giamberardino, NECA Executive Director, Government Affairs. “Electrical contractors belong to an industry that was disproportionally hurt by the recession and has lagged in the economic recovery. Yet our effective tax burden is among the highest in the nation.”
Lack of Tax Reform Delays Hiring for Electrical Contractors
NECA’s economic survey of member electrical contractors earlier this year cited the lack of comprehensive tax reform as a primary reason for delaying hiring decisions and operations growth. The construction industry pays the highest effective corporate tax rate of any industry – 31 percent, more than double the rate most sectors pay, according to the most recent analysis of the U.S. Dept. of the Treasury.
“Electrical contractors are the industry’s job creators and they are still hurting. Our country needs to put more people back to work and get our economy moving,” Giamberardino said. “NECA contractors want to pursue new business opportunities and hire more workers. They are trapped, however, by crushing effective tax rates and uncertainty about when and if comprehensive tax reform will ever come.”
Comprehensive Tax Reform is Key
NECA’s call for comprehensive tax reform includes the reduction of overall corporate tax rates, the simplification of the corporate and personal tax code, and reducing the tax gap to give electrical contractors the chance to compete for work and create jobs.
“Significant changes to both the individual and corporate tax rates must be made to create a sustainable and competitive business environment, Giamberardino said. “Rather than tinker around the edges of the existing tax code, fundamental and comprehensive tax reform is needed.”
NECA’s position paper on comprehensive tax reform can be read online.
About the National Electrical Contractors Association
NECA is the voice of the $130 billion electrical construction industry that brings power, light, and communication technology to buildings and communities across the U.S. NECA contractors help customers achieve their goals for energy conservation, efficiency and renewable power. NECA’s advances the industry through advocacy, education, research and standards development. For more information, visit www.necanet.org.
To speak with a NECA expert on tax reform policy, contact Beth Margulies, firstname.lastname@example.org, 301-215-4526 office, or 240-461-4769 mobile.