BY: KEITH ELDREDGE, CPA, RKL, ABC KEYSTONE 2022 CHAIR OF THE BOARD
August was a fun month! It was great to see everyone in Wrightsville at ABC Keystone’s Summer Outdoor Mixer presented by Saxton & Stump Lawyers and Consultants and to see many of you in Belfonte at the Keystone Chapter’s Nittany Valley Mixer. Mixers like these are events I look forward to each year to have a good time and catch up with so many of our ABC members. It was especially valuable this year to build connections with our members from our new Nittany Valley Region.
Another important event that took place in August was the Keystone Chapter’s Safety Recognition Breakfast presented by Cohen Seglias Pallas Greenhall & Furman PC. Congratulation to all STEP level recipients, and thank you for submitting your applications this year. You understand that safety is a life-long journey, and you have an obligation to your employees to make sure they make it home each day.
Now, it is time to turn the calendar as we head through September. Vacations are done, and we begin a new school year, which means we look forward to the start of a new apprenticeship year. Our team is excited to see all the students back, and they are eager to see what these apprentices will accomplish.
It is also time to talk about the elections. You have heard a lot from me about these upcoming elections, and now it is crucial we focus on the issues and further discuss what is important to ABC and to you.
One of the most dangerous things Congress could due to hurt an economy that was struggling with inflation and rising interest rates was to pass a new tax-and-spend bill. This new bill added a 15% corporate minimum tax under the alternative minimum tax, a 16.4 cent tax on crude oil and imported petroleum products and has infused billions of federal dollars into the economy—continuing the pressure on prices into the future. With inflation continuing near a 40 year high, we are hearing that the Federal Reserve will be looking at another 50-75 basis point increase in the rates.
There were other items in the bill that will have impact on the construction industry and were not highlighted by most news outlets. This bill includes an unprecedented expansion of Davis-Bacon and government registered apprenticeship incentives providing a five-fold increase in a tax credit for private developers that impose Davis-Bacon prevailing wage requirements. It is scary to think about Davis-Bacon rules on private jobs. Hopefully, the additional cost will outweigh any savings they will see.
In Biden’s speech about the passing of the bills, he was 100% correct about one thing: the American people will need to decide whether they believe in an America under the Democrat-led policies or Republican-led policies. The Chair of the House Ways and Means Committee, Rep. Richard Neal, D-Mass, released a statement that stated if the Democrats retain control of the House, they will push more tax increases over the next two years.
So, I ask, under which set of policies do you believe you and your business will do better: tax-and-spend or more business-friendly policies? We need to educate the uninformed voter about the dangers of a tax-and-spend Congress.
Make sure your voice is heard this fall. Vote.
Posted September 7, 2022