Sources: Associated Builders & Contractors, Washington, D.C.; CP staff
Thanks to the Tax Cuts and Jobs Act passed in December, more than half of contractor members ABC recently polled plan to hire additional staff and invest in workforce development, while 90 percent indicate that employees have seen an increase in their paychecks.
“We are celebrating the positive results of the first reform of the tax code in decades—one that will unlock the full economic potential of ABC’s 21,000 members,” said ABC CEO Michael Bellaman on the occasion of 2018 Tax Day. “Our members are grateful to Congress and the Trump administration for reduced tax rates on C-corps and pass-throughs, higher exemptions for small businesses, the repeal of corporate AMT and the elimination of the ACA individual mandate.”
As capital-intensive, low-margin, domestically oriented businesses comprised largely of small, family-owned and closely held merit shop construction firms, he added, ABC members feel the positive effects of tax reform.
“Due to the passage of tax reform and optimism on infrastructure and the economy, we have given our employees across-the-board bonuses, added sick leave for all hourly employees and plan to hire 50 to 100 additional workers in the next six months,” affirms Jay Baldwin, president of Reliable Contracting Co., a 90-year-old, family-owned paving contractor employing 400 people in the Baltimore-Washington area. “We will also be making significant capital expenditures.”