Construction Legislative Week in Review
www.agc.org September 9, 2010
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On the Inside
TAX
Repeal of Form 1099 Reporting Requirements Gains Momentum - Action Still Needed
TRANSPORTATION
Campaign for Federal Highway and Transportation Bill Launches in Iowa
President Obama Announces Transportation Infrastructure Investment Initiative
ELECTIONS
Primary Season’s Second “Super Tuesday”
TAX
Repeal of Form 1099 Reporting Requirements Gains Momentum - Action Still Needed
 

The massive healthcare bill enacted in March contained a provision that requires government, nonprofits and businesses of all sizes to file Form 1099s with the IRS when goods or services purchased without a credit card from another business exceed $600 in a year. 

Currently, a Form 1099 filing is required only for services—not goods—provided by self-employed independent contractors.  The provision was justified as a way to identify businesses that are not reporting or underreporting income to avoid paying their fair share of taxes.  The Congressional Budget Office estimated that the provision would raise $17 billion to offset a small portion of  the healthcare bill,  but AGC members know the increase in paperwork and compliance costs will be a tremendous burden on their businesses.

AGC supports full repeal of the provision rather than a modification, which is why AGC supports the Small Business Paperwork Mandate Elimination Act. 

The House considered legislation prior to the August recess that would have repealed the provision; however, the bill ultimately failed.  The Senate is scheduled to vote on two amendments to a small business jobs bill when they return next week: one that would repeal the provision (Senator Mike Johanns), and one that would modify the provision (Senator Bill Nelson).  Because the proposed modification would not repeal the 1099 requirement, but would instead put in place new exemptions, AGC does not believe the amendment would provide adequate relief for businesses.

AGC continues to request members write their Senators and Representative in support of the Small Business Paperwork Mandate Elimination Act and in support of a full repeal of the burdensome 1099 reporting requirement.  For more information on the 1099 reporting requirement and to write your Members of Congress, use the AGC Legislative Action Center.

For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org. Return to Top

TRANSPORTATION
Campaign for Federal Highway and Transportation Bill Launches in Iowa
 

AGC of Iowa president Robert Cramer addresses the media.

AGC, as part of the Transportation Construction Coalition and Americans for Transportation Mobility, pushed for passage of the long-delayed highway and transportation bill Wednesday in Des Moines.

The groups began a new national advertising campaign to push for federal funds to fix aging roads and unsafe bridges and improve transit services in August, and unveiled new bus, radio and print advertisements in Des Moines.  The effort, which will cover dozens of states during the coming weeks, is designed to educate the public about why passing a federal transportation bill is essential to improving road conditions in states like Iowa. AGC has hosted events in South Dakota and South Carolina as well.

Read the press release here. The news was covered by the Des Moines Register, as well as local television and radio stations.

For more information, contact Brian Turmail at (703) 837-5310 or turmailb@agc.org. Return to Top

President Obama Announces Transportation Infrastructure Investment Initiative
 

At a Labor Day event in Milwaukee, Wisconsin, President Obama announced a plan to request an up-front investment of $50 billion for transportation infrastructure. While there are few specific details, AGC has learned from a senior U.S. DOT official that President Obama is committed to moving a six-year surface transportation bill in 2011.

A significant portion of the $50 billion will be available in the first year for investments in highways, transit, airports and rail. It appears these funds are supplemental to funds that would already have been provided for these programs in FY 2011 (beginning October 1, 2010), but it is unclear whether these funds would move as part of reauthorization or as a separate legislative vehicle. The amount allocated to each program is also not specified.

The president indicated that this increased funding will be paired with the administration’s vision for reforming existing transportation programs over the next six years. It appears that the proposal will include the long awaited “principles” for reauthorization of SAFETEA-LU the administration has been expected to deliver.

Additional details from the White House are available here.

In response to the Obama Administration's proposal for new transportation investment, AGC noted that countless thousands of construction workers will have a better chance of retaining their jobs, but that the most effective sequel to the stimulus is passage of a fully funded six-year surface transportation bill.  AGC’s reaction was covered by the LA Times, Baltimore Business Journal and Engineering News-Record.

It is highly unlikely that Congress will do anything in regards to the president’s request prior to the November elections. AGC will follow developments closely and provide details as they become available.

For more information, contact Brian Deery at (703) 837-5319 or deeryb@agc.org. Return to Top

ELECTIONS
Primary Season’s Second “Super Tuesday”
 

The second “Super Tuesday” this primary season is quickly approaching.  AGC PAC has been active in many of the nine states that will hold primaries next Tuesday: Delaware, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Rhode Island, Vermont and Wisconsin.  The final primary, held in Hawaii, will take place on Saturday, September 18. 

AGC PAC checks designated to a candidate’s “PRIMARY” race must be delivered before the primary election. These checks will not be accepted after the date of the primary race and will be considered void. 

 

NUMBER OF COMPETITIVE RACES

House

Democrats Defending Seats: 81
Republicans Defending Seats: 8

Senate

Democrats Defending Seats: 13
Republicans Defending Seats: 6

Competitive races are those the Cook Political Report has defined as "Lean" or "Toss Up"

AGC is carefully watching the Delaware Senate “likely Republican” seat left open by Vice President Joe Biden (Sen. Ted Kaufman holds the seat for the interim).  Vying for the GOP nomination are current U.S. Representative Mike Castle and Christine O’Donnell.  Current polls show Castle, who is likely to be the GOP candidate, winning over presumptive Democratic candidate Chris Coons, who serves as New Castle’s City Executive. But this could be another Tea Party upset of a GOP favorite.

AGC has identified several seats at play on Tuesday where contractors are on the ballot:

Delaware Open AL Seat (Two Republicans running for the GOP nomination)
Michelle Rollins, Republican, Real Estate Development
Glen Urquhart, Republican, Real Estate Development

NY-24 (Will face current Representative Michael Arcuri (D))
Richard Hanna, Republican, Residential Construction

WI-8 (Winner will face current Representative Steve Kagen (D))
Reid Ribble, Republican, Roofing Contractor will face off in the GOP primary against another Republican contractor, Roger Roth, who is a homebuilder.

NY-29 Open Seat
Tom Reed, Republican, Real Estate Development

Stay tuned for all the primary results in next week’s Construction Legislative Week in Review.

Upcoming Pre-Election PAC/Grassroots Conference Call
On Thursday, September 16, AGC PAC and Grassroots will host a conference call for the entire Legislative Network and interested parties to discuss the pre-election environment.  Please contact Blair Hood at hoodb@agc.org if you would like to participate. Return to Top

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