Thursday, March 28, 2013

Congressman Tom Rice (SC) on Estate Tax



Family business owners and entrepreneurs are all too familiar with our country’s onerous estate tax. The fiscal cliff negotiations at the end of last year halted the 55 percent estate tax rate from again taking effect, but the negotiated 40 percent rate and $5.12 million exemption amount enacted are hardly encouraging. 

What this means is when hardworking business owners die, everything in their estate that totals more than $5.12 million is levied with a 40 percent federal tax. Not to mention, these business owners have already dutifully paid income taxes, capital gains taxes, and state taxes throughout the course of their business’ existence.

Historically, this tax has been imposed as a temporary tax for defense purposes. After a war concluded, the government would repeal the tax. In 1916, the tax was imposed for World War I but it has yet to be repealed, nearly 100 years later. According to the Congressional Budget Office, since 1945, estate and gift tax receipts have consistently remained near or below 2 percent of federal revenues.

Since this tax barely brings in a nominal amount of revenue, the pain it inflicts on American families certainly is not worth it.

In order to comply and preserve as much of their assets as they can, business owners are spending hundreds of thousands of dollars on life insurance, attorney fees, and financial planning advice all to avoid being taxed – again – on everything they leave behind to their loved ones. Some families are not as lucky and, in order to pay these taxes, those who inherit a business are commonly forced to sell land and equipment vital to the company’s operation, and the business is essentially rendered liquidated. 

The National Federation of Independent Business (NFIB) has found that small business owners frequently cite the estate tax as one of the most important issues for small businesses. Many small businesses and farms in our country are family owned and are passed down from one generation to another. In the past, the amount levied by the tax has been so large, it has forced the sale of a bulk of company assets, essentially forcing a company ultimately out of business, never giving the younger generation a chance.

As a member of the House Small Business Committee and Chairman of the Subcommittee on Economic Growth, Tax, and Access to Capital, I find this tax to be troublesome at best. We must reduce the tax burden on small business owners – America’s economic engine – so they can continue to invest in our economy. Small business owners are America’s largest job creators and, when they are forced to spend time and money adhering to futile government regulations, hardworking Americans suffer.

With nearly 23 million people in our country unemployed or underemployed, it is baffling that the federal government would continue to impose such a burdensome tax on our job creators. I will oppose any legislation that increases the estate tax, and will support a full repeal of this tax, because it is wrong to burden our fellow Americans who have invested in our economy and in our nation their entire lives.

Tom Rice represents South Carolina’s newly created Seventh Congressional District. He is a tax attorney, small business owner, and CPA Emeritus. He serves on the Budget Committee, Small Business Committee, and Transportation & Infrastructure Committee, and is chairman of the Small Business Subcommittee on Economic Growth, Tax and Capital Access.

Wednesday, March 27, 2013

Construction Growth, Price Increases Boost Costs


Turner Construction Co. announced that the First Quarter 2013 Turner Building Cost Index – which measures costs in the non-residential building construction market in the United States – has increased to a value of 849. This reflects a 1.19 percent increase from the Fourth Quarter 2012 and a 3.41 percent increase from the First Quarter 2012. 
 
"The increase in private non-residential construction spending over the past year, material and equipment prices continuing to inch upwards, and a slight increase in labor rates has led to a boost in construction costs," says Karl F. Almstead, the Turner VP responsible for the Turner Building Cost Index. 

About 90 percent of Turner's business is performed under contract arrangements where Turner provides extensive preconstruction planning services before the contract price is fixed and before construction starts. By providing preconstruction services and using enhanced procurement strategies, Turner effectively manages the market risks associated with cost-related issues. 

Turner has prepared the construction cost forecast for more than 80 years. Used widely by the construction industry and Federal and State governments, the building costs and price trends tracked by the Turner Building Cost Index may or may not reflect regional conditions in any given quarter. 

The Cost Index is determined by several factors considered on a nationwide basis, including labor rates and productivity, material prices and the competitive condition of the marketplace. This index does not necessarily conform to other published indices because others do not generally take all of these factors into account.

Tuesday, March 26, 2013

Barnhart to Purchase Steel City Crane


Barnhart and Steel City Crane have reached a definitive agreement under which Barnhart will purchase the assets of Steel City.   

For more than 50 years, Steel City Crane has offered operated crane service to industrial clients in the Southeastern United States with offices in Alabama and Mississippi. Currently, Barnhart has 25 branches nationwide and an equipment inventory that includes electronic steer Goldhofer trailers, cranes to 1,760 tons, sliding systems, strand jacks, and the Modular Lift Tower system.
  
The purchase will expand Barnhart's ability to serve heavy industrial customers in the coastal regions of Alabama and Mississippi. Steel City's crane inventory will be maintained and managed by Barnhart's branch in Mobile, Ala. Arlington Capital Advisors counseled and assisted Steel City in the acquisition process.

"Steel City is a great company with a strong history. This move is a very positive change for everyone involved," says Alan Barnhart, CEO of Barnhart. "For years Steel City has built a good reputation by providing lifting solutions to heavy industrial customers such as process plants, refineries, and power plants – especially during outages and shutdowns. This acquisition will allow Barnhart to continue to serve those same customers while offering a broader range of services that should help customers lower a project's overall costs. We think our industrial customers along the Gulf Coast Region will be very pleased with the expansion of services this acquisition allows."





Monday, March 25, 2013

Belgard Hardscapes Announces Ultimate Contractor Contest



Belgard Hardscapes is launching its Ultimate Contractor Contest, running through May 15, 2013.

Belgard challenges contractors across the country to share a new sales or marketing approach that will grow their business in 2013. Submissions will be accepted through May 15 at www.Belgard.biz/ultimate. 

The contractor with the most innovative idea will be named the Ultimate Contractor and receive a $15,000 business improvement package including:
    • 1,000 square feet of a product from Belgard Hardscapes’ 2013 introductions (product may depend on geographic region)
    • One year subscription to VisionScapes design software
    • A marketing consultation facilitated by the Belgard Hardscapes Marketing Team
    • A “Come Alive Outside Day” hosted by leading industry consultant Jim Paluch
    • One year enrollment in the Working Smarter Training Challenge
    • One year enrollment in A Better Way 2 Learn Financials.
  
For full contest rules and regulations and to enter, visit www.Belgard.biz/ultimate
.

Sunday, March 24, 2013

Florida Masonry Apprentice and Educational Foundation: 9th Annual Masonry Showcase



On March 1, 2013, the Florida MasonryApprentice and Educational Foundation (FMAEF) held its 9th Annual Masonry Showcase at the Department of Management Services Warehouse in Starke, Fla. Eight schools sent masonry students to compete in in this annual event: Suwannee/Hamilton Technical Center from Live Oak; Camden County High School from Saint Mary’s, Ga.; West Nassau High School from Callahan; Traviss Technical Center from Lakeland; Menendez High School from St. Augustine; Saint Cloud High School from Saint Cloud; Ridgeview High School from Orange Park; and Bradford/Union Technical Center.

This Masonry Showcase was started nine years ago by the FMAEF and the four masonry instructors at Suwannee, Bradford, Menendez and Ridgeview to highlight the skills of the masonry students in north Florida. The rules were simple: Each school was to bring three of their best masonry students and two tenders, and they would compete using the FMAEF/Southern Manpower Rules for Masonry Competition.

In 2006 the Showcase adopted the Skills USA rules for competition (the FMAEF & Southern Manpower rules met Skills Competition standards) and the top three winners from each school were eligible to compete in the Florida Skills State Masonry Contest. (The winner of the Florida Skills competition would go to Kansas City and represent Florida in the Skills USA National Masonry Contest.)

The Showcase has allowed 313 masonry students to show off their masonry skills and compete. Since 2006 the Masonry Showcase has sent 138 masons to Florida Skills and had has the seven winners of the Florida Skills masonry contests go on to Kansas City to represent Florida (these seven winners have all finished in the top 10 in the country).

The 2013 Masonry Showcase was held on March 1, 2013, and Suwannee Tech was the winner (Suwannee was sponsored by Vulcan/Florida Rock) with a score of 4,091.7 out of possible 5,000 points.

Second Place winner was West Nassau High school with a score of 3,949.3 points out of a possible 5,000 points. Only 142.4 points separated the first and second place teams. Candem County High School finished third with 3,805 points, only 144.3 points from second place. Menendez finished fourth; Traviss Tech finished fifth; Saint Cloud finished sixth; Ridgeview finished seventh; Bradford had one student who competed.


This year’s Showcase produced 16 masons from Florida schools who will go on to Pensacola for the Florida Skills Masonry Contest, and three masons from Georgia who will go on to compete in Georgia Skills in Atlanta.