Most contractors won’t pay more in taxes under President Joe Biden’s $2.3 trillion infrastructure proposal, while the infusion of cash to fund more public construction projects would provide a significant upside for their businesses, according to a certified public accountant who leads Ernst & Young’s global construction and engineering practice.
Accountant Erin Roberts said that because the majority of construction firms in the U.S. are set up as “pass-through” entities and are not subject to corporate taxes, a proposed increase in the corporate tax rate to pay for the infrastructure package would have limited impact on them, while the trillions of dollars flowing to civil projects presents outsized opportunities to increase revenue in the coming years.
