CONTACT:
Dennis S. Day: (202) 383-2710
Phil Thoden: (202) 383-2764

CONGRESS IS "DEMOLISHING" THE DEATH TAX!

AGC, CIMA and AED Present Members with Toy Models Illustrating the Capitol Intensive Nature of the Construction Industry

Washington, D.C. – Today, the Associated General Contractors of America (AGC), Construction Industry Manufacturers Association (CIMA) and the Associated Equipment Distributors (AED) presented to Members of Congress construction equipment model toys illustrating the capital intensive nature of the construction industry. The deliveries were made to drive home the point that the estate tax hits family-owned construction businesses hard at the worse possible time.

AGC Executive Vice President and CEO Stephen E. Sandherr said, "Because of their significant investment in heavy equipment, family-owned construction companies are hit hard by the Death (estate) Tax. Many are forced to liquidate their equipment and lay off employees just to pay this tax that can total up to 55 percent of all personal and company assets. These assets include equipment, real estate, and savings and retirement funds. AGC, CIMA and AED believes it to be grossly unfair that small businesses can be destroyed simply because of the taxes incurred upon the death of the owner."

Representatives Jennifer Dunn (R-Wash.) and John Tanner (D-Tenn.) recently joined together to thank AGC for their work on behalf of eliminating the Death Tax.

Dunn said, "It is time for Congress to ‘Demolish the Death Tax!’ I would like to thank AGC for all of the hard work you are doing to eliminate one of this nation’s most onerous taxes: the Death Tax."

Representative Tanner said, "Representative Dunn and I are extremely proud that the Associated General Contractors of America is playing such a critical role in this effort. I want to thank the members of AGC for providing the leadership we need to achieve success. It is wrong for a family to be forced to sell their farm or business simply to make an estate tax payment."

The elimination of the death tax is AGC’s number one legislative priority for the 106^th Congress. According to an AGC/Deloitte and Touche survey, 94% of AGC member businesses are closely-held and 81% are owned by fewer than four persons. In the capital intensive construction industry, even the smallest contractor has lifetime capital assets, property and real estate over $650,000, the current estate tax credit amount. The burden of the federal estate tax falls squarely on AGC’s smallest family-owned construction firms.

Sandherr said, "It is unthinkable that in a time of surplus that the federal government imposes a tax that raises little federal revenue while it devastates small businesses and kills jobs. The construction industry is very capital intensive and each one these toys we presented today illustrates that fact."

The toys provided to the members represent three pieces of construction equipment: a bulldozer, dump truck, and front-end loader. The three common pieces of construction equipment are worth well over one million dollars, an amount well over the current death tax effective exemption amount of $650,000.

According to a report recently issued by the Congressional Joint Economic Committee, the death tax generates costs to taxpayers and the economy that far exceed any benefits it produces. The report also found that the tax raises little, if any, net revenue for the federal government and is a leading cause of dissolution for family-run businesses.

AGC strongly supports legislation by Reps. Jennifer Dunn (R-Wash.) and John Tanner (R-Tenn.) H.R. 8 and Senator Ben Campbell (R-Colo.) S. 38, that would reduce death taxes by 5 percent per calendar year until completely eliminated. AGC also strongly supports bills by Rep. Chris Cox (R-Calif.) H.R. 86 and Sen. Jon Kyl (R-Ariz.) S. 56, to immediately repeal the death tax.

The Associated General Contractors of America is the nation’s largest and oldest construction trade association, founded in 1918. AGC represents more than 33,000 firms, including 7,500 of America’s leading general contractors, and 12,000 specialty-contracting firms. Over 14,000 service providers and suppliers are also associated with AGC, through a nationwide network of chapters.

http://www.agc.org/   dayd@agc.org

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