The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in reaction to the launch of the new Coalition for Fair Effective Tax Rates. The association is a founding member of the new coalition, which will work to ensure that comprehensive tax reform efforts focus on lowering the effective corporate tax rates — what firms actually pay in total federal taxes.

"The launch of this new coalition will help bring needed tax relief to a construction sector that currently pays the highest effective corporate tax rate of any industry type. That relief can’t come soon enough as the hard-hit construction industry pays an effective corporate tax rate of 31 percent, the highest level in the economy and more than double the rate some sectors pay, according to the most recent analysis by the U.S. Department of the Treasury.

"Given federal officials’ repeated insistence on wanting to put in place policies to boost employment levels, it is hard to understand why our tax policies discriminate against the labor-intensive construction industry. Fortunately, members of Congress have an opportunity to address the disparity among effective rates as they undertake broader, comprehensive tax reform. These reform efforts need to focus on, and ultimately lower, the effective corporate tax rate employers actually pay, instead of the ostensible, pre-deductions, corporate rate that is so often cited.

"In addition to serving as a founding member of this new coalition, the Associated General Contractors of America will continue to work with federal officials to educate them about the disproportionate tax burden imposed on construction employers and work to promote the kind of tax relief needed to encourage more growth in construction employment."

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