Engineering Inc. - January/February 2009 - (Page 8) LEGIsLatIvE aCtIoN FRom aCEC’s GovERNmENt aFFaIRs DEPaRtmENt ACEC supports prEsidEnt-ElECt on infrAstruCturE-BAsEd stimulus pACkAgE ACEC urges president-Elect and Congress to Enact infrastructure-Based stimulus ACEC emphasized the importance of robust infrastructure investment in November to congressional leaders and representatives of President-elect Barack Obama’s transition team. ACEC President Dave Raymond was among a select number of industry leaders invited to meet with representatives of Obama’s transition team at the U.S. Department of Transportation in late November. Earlier in the month, Raymond also wrote to U.S. House and Senate leaders to underscore the importance of including infrastructure investment in any economic recovery package. In the meeting with Obama’s transition team, Raymond said that an immediate influx of funding should be part of a long-term economic agenda that includes multiyear reauthorizations for highway and transit, aviation and other critical infrastructure programs to make the investments necessary to sustain economic growth. income tax rates adopted in 2001, except for the top two rates, which may be increased at some point. In addition, Obama has proposed several targeted tax relief measures. A $500 tax credit available to individuals earning up to $75,000 and couples earning up to $150,000 is being considered to partially offset payroll taxes. He also supports suspending taxation of unemployment benefits. Although the emphasis will be on tax relief for individuals, the recovery package could also include provisions that would benefit business investment. Two possible measures are: an extension of the higher Section 179 expensing level and the bonus depreciation provision, both part of the stimulus bill approved by Congress in early 2008. ACEC’s call for infrastructure investment to spur job creation and economic growth was heard by Obama representatives, along with House and Senate leaders. The president-elect has said that an economic stimulus bill will be among his first priorities when he takes office. (See exclusive interview with the president-elect on pp. 11–14.) In his letter to congressional leaders, Raymond asserted that: “An infrastructure-based economic stimulus package would spur immediate job creation and economic growth. At the same time, it would help create the critical infrastructure base needed for America to compete in the 21st century.” larger tax Changes In addition to tax provisions in a stimulus bill, Congress and the new administration may consider broader tax changes. President-elect Obama has stated that the reduced tax rates for higher-income individuals may be allowed to expire in 2011. Income tax rates would increase for individuals earning more than $200,000 and couples earning more than $250,000. The top two rates would likely increase to 36 percent and 39.6 percent, from 33 percent and 35 percent, respectively. Businesses that are organized as S corporations or partnerships also would be affected by these tax rate increases. Additionally, estate tax relief is expected to be frozen at 2009 levels, with an exemption of $3.5 million per person and $7 million per couple and a top tax rate of 45 percent. The president-elect also has expressed support for increasing the top capital gains rate from 15 percent to 20 percent or higher; the tax rate on dividends may also rise. Some congressional leaders have signaled interest in a larger tax reform effort. Legislation introduced by House Ways and Means Committee Chairman Charles Rangel would lower the top corIssuEs oN thE movE Infrastructure stimulus package broad-based tax reforms ConstruCtion PhotograPhy/Corbis What’s NExt house, senate action in January–February Provisions included in stimulus package, larger package later in year Court decision expected in march tax relief may Be Added to stimulus package In addition to infrastructure funding, Congress and the next administration may include significant tax changes as part of the economic recovery package. President-elect Obama has prioritized tax relief for low- and middle-income Americans, perhaps making permanent the 8 ENGINEERING INC. JaNuaRy / FEbRuaRy 2009 amicus brief on behalf of liability protections
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