AGC Weighs in on Economic Stimulus Package; House and President Fail to Include Infrastructure
On Friday, AGC wrote the President and Congress to advocate for initiatives that will have an immediate positive impact on economic activity, including immediate infrastructure spending on projects ready in the next 90 days and targeted tax relief. Thursday, the President and House Leadership announced an agreement in principle which should help stimulate the economy and increase business investment, yet leaves out infrastructure.
Click here to read the letter.
The cornerstone of the plan is a $300 rebate per individual filer which adjusts up to a maximum $600 ($1200 per couple) and begins to phase out at $75,000 ($150,000 per couple). An additional $300 per child will be included. The plan also includes 50 percent bonus depreciation for equipment with a depreciation period of 20 years or less, advocated for by AGC so that companies making equipment investment will have more cash on hand. AGC also insisted on the increased Section 179 expensing up to an overall investment limit of $750,000, also increasing the investment opportunities for contractors. This will allow small business to fully expense $250,000 in both new and used tangible property in the year it is purchased.
After House members write and vote on the measure, the legislation will move to the Senate, which has not agreed in principle to the entire plan. AGC has already been working with the Senate pushing for infrastructure investment in the package. Majority Leader Harry Reid (D-Nev.) has said the Senators would like to add infrastructure investment to the package. AGC will continue to work with Senators Max Baucus (D-Mont.), Ben Nelson (D-Neb.), John Thune (R-S.D.) and Ron Wyden (D-Ore.) who have expressed support for the inclusion of infrastructure spending in the economic growth package. AGC will also work with Senators to include legislative provisions to prevent the Highway Account of the Highway Trust Fund from going into deficit in the upcoming fiscal year and avert potential cuts to states’ federal highway funding. This is a high priority for AGC in 2008.
For more information, contact either Heidi Blumenthal at (202) 547-8892 or firstname.lastname@example.org, or Karen Bachman at (202) 547-4733 or email@example.com.
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