Contact: John Schneidawind
For immediate release:
Washington, D.C. – May 21, 2010 – The American Institute of Architects (AIA) today issued the following statement on provisions of the so-called “tax extenders” bill filed today with the House of Representatives that would raise payroll taxes on many small businesses who file their taxes under the S. Corp. provisions of the tax code.
“As architects begin to recover from the Great Recession, now is the worst time to raise taxes on a sector of the economy that is a catalyst for job growth in the design and construction industry. Only this week, the AIA reported that architectural billings increased for the third consecutive month, an indication that new construction could be on the rise in nine to 12 months,” said Paul Mendelsohn, AIA Vice President, Government and Community Relations.
“Since many of our members work for firms with three or fewer employees, this could force architects to lay off staff or stop hiring new staff to pay the new tax – even though this provision is in a ‘jobs’ bill.”
“Although the stated intention of this provision would be to collect taxes from individuals who form as S corporations to avoid paying payroll taxes, it would invariably entrap legitimate S corporations who follow the letter and spirit of the law.”
About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org