The construction industry is seeing a boost in hiring as President Donald Trump announced that he is rolling back a tax loophole that allows construction companies to defer paying payroll taxes on income earned from building projects.
The tax break has been popular with construction companies that earn revenue from leasing land, and has helped the industry in the past year as demand has surged.
The construction sector has long been a lucrative source of income for the construction industry, but Trump’s announcement is the latest sign that construction jobs are now paying more in federal taxes than ever before.
“This is a big deal for the economy and the American people,” Trump said at a White House event on Thursday.
“We are going to create jobs.
We are going for the middle class, and that’s why we’re rolling back this tax break.
We’re going to make sure we are paying our fair share.
This is not good for the country.
It’s not good to the construction workers.
This will bring jobs back to our country.
This should not happen.”
Trump said the construction tax break would be “very good” for the U.S. economy.
But the White House said Trump’s plan would only reduce tax revenue by $2.4 billion over the next decade, and will increase spending by $1.7 billion over that same period.
Trump also said he would not lower the statutory corporate income tax rate to 35 percent, the top rate on capital gains and dividends.
That would boost revenues by $500 million over the same period, according to the White Senate Office of Management and Budget.
The Trump administration has said the proposed change would create about 8,000 construction jobs and 3,000 other construction jobs, or roughly 2 percent of the overall economy.
The administration has also estimated that it could save $250 million in taxes by repealing the tax break for new and existing construction, as well as by cutting the tax credit for homeowners who construct homes on their own.
But in a letter to Trump, the Whitehouse said that “while this proposal does provide some relief for the average American construction worker, the real gain would come from the millions of Americans that have been hit the hardest by this policy change.”
The letter came in response to a request from Rep. Ed Whitfield, a Utah Republican who is chair of the House Ways and Means Committee.
Whitfield said the proposal would have a “catastrophic effect” on the construction sector, adding that the cost of new construction would increase by about 30 percent.
Whitfields letter called on Trump to “explore and implement” a bipartisan compromise that includes a tax relief for construction workers, including the creation of a “job creator tax credit.”
“The proposal by Mr. Trump would allow construction companies, like those that employ construction workers and their families, to avoid paying payroll tax on the income earned by the workers,” Whitfield wrote.
“These tax credits have been an important component of economic growth and job creation in the construction and manufacturing industries, and I look forward to working with the President on his plan to make this policy permanent.”
The White House has also said the Trump administration will not repeal a tax break that was enacted in 2018 and remains in effect.
The law, known as the Build American Tax Credit, is a one-time, temporary tax break given to businesses that hire Americans to build buildings.
The credits can be used for construction and other construction work, but they can be reduced by an amount equal to the number of construction workers who receive them.
Construction firms that receive the tax breaks can also deduct up to $1,000 of the amount paid in federal income taxes from their federal tax bills.
The Build American Jobs Act would repeal the tax code provision that allows companies to deduct $1 million from payroll taxes and $2 million from state and local taxes.
The Whitehouse administration has previously said that the tax law has led to the creation about 11,000 jobs and 1,000 new construction jobs over the past 10 years.
Trump has previously suggested the tax bill would reduce federal spending by as much as $1 trillion over the course of a decade.