Engineering Inc. - July/August 2008 - (Page 9)

Rep. Kendrick Meek (far right) meets with ACEC Chairman John Hennessy (left) and ACEC President Dave Raymond (center) in his Capitol Hill office to discuss the 3 percent withholding. RAYMOND: What do you foresee is the future of this legislation in the House and the Senate? MEEK: I see tremendous support across the board and across party lines. Every member of Congress can identify with the need to change the 3 percent rule. Even the IRS would almost concur because we’re having them report back to us on language we would like to add that will take this process a little further. Once that report comes back, I believe that we will find a way to fill the projected revenue gap and do away with the 3 percent altogether. But it takes time, and it takes one step at a time. HENNESSY: To that point, you have some 250 co-sponsors for the bill. You certainly seem to have the House covered. Is there anything ACEC and the engineering industry can do to help garner support in the Senate? MEEK: We continue to build the momentum in the House because we have so many co-sponsors. And we’re always looking for more, so keep doing what you’ve been doing these many months in mak- ing sure your members inform their legislators about the bill. In my opinion, this will not be totally resolved in the 110th Congress—a future Congress will retire this effort. However, we have made great headway with this legislation because, for certain, this Congress is very aware of the 3 percent mandate. We’ve seen a great deal of support from representatives from government, small and large business, and people just concerned with good government. RAYMOND: Are there alternatives to the 3 percent withholding from the standpoint of the revenue they sought to achieve through this unwarranted method? MEEK: We’ve asked the IRS to report back to us on the impact it will have on small business and just how many problems it will create within the federal government. But we’re also going to be looking at all taxes and tax breaks in the next Congress. Through those measures, we hope to be able to fill the revenue gap. Right now, the staff of the Ways and Means Committee and the Senate Finance Committee staff also are trying to figure out how they can close that gap. Everything we do, we have to also figure out how we’re going to pay for it. That has not been achieved yet for this issue, but it will be. HENNESSY: Looking at the bigger tax picture, Ways and Means Committee Chairman Charles Rangel (D-N.Y.) has indicated his desire to move a major tax reform bill in the future. What can you tell us about the general direction of this effort? MEEK: I think there is going to be a great discussion on Capitol Hill—one that everyone concerned about taxes, and interested in tax incentives and tax breaks, should pay close attention to. It’s going to become very real because everything is going to be on the table for the 111th Congress. With the new administration, there will probably be a presidential commission to look at the entire tax picture and make recommendations on what Congress should do. As a result, every profession should come together and think about what is important to them as it relates to the tax structure. But JULY / AUGUST 2008 ENGINEERING INC. 9

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Engineering Inc. - July/August 2008 Table of Contents From ACEC to You News & Notes Market Watch Legislative Action Congressman Kendrick Meek Going Global 2008 Professional Liability Insurance Survey Bridging the Gap 2008 Convention Wrap Up 2008-2009 Executive Committee 2008 Fall Conference Primer Business Insights Members in the News One on One

Engineering Inc. - July/August 2008

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