NSSGA will continue to be involved in the discussion of tax reform following the enactment in 2017 of the Tax Cuts and Jobs Act. NSSGA will work to protect the positive changes from that legislation, including lower corporate tax rates, repeal of the corporate alternative minimum tax, and expensing of business equipment. We will seek to extend permanently the beneficial individual tax rate and other changes included in that tax reform law. In addition, we will proactively seek and propose new reforms to benefit job creation and aggregates industry growth and vigorously oppose any provisions that would adversely impact aggregates operators. NSSGA supports minimizing the tax burden on businesses and working families in order to increase the rate of capital formation, economic growth, and job creation.
NSSGA will continue to oppose legislative proposals to repeal the percentage depletion allowance, the capital cost recovery method recognized in the tax code for the aggregates industry and other natural resources industries. It is five percent for sand, gravel and crushed stone and varying amounts up to 22 percent for other minerals. Percentage deletion is limited to 50 percent of net income, less exploration costs, and is a preference item for corporate minimum tax. Repealing percentage depletion for aggregates would increase the cost of constructing public works and infrastructure by raising mining costs that would be passed on in higher prices to the end users of aggregates.
Reform of the Death Tax
The Tax Cuts and Jobs Act increased the death tax exclusion from $5 million per person to $10 million, but only through 2025. NSSGA believes continued tax relief is crucial to economic recovery, growth, and prosperity and supports making permanent a reduction in the estate tax. The estate or “death” tax falls most heavily on small, family-owned businesses and their employees. Permanent reduction, if not outright elimination, of the death tax is a critical element of tax relief for the aggregates industry. The death tax kills job creation and economic growth and saps entrepreneurial spirit.
NSSGA supports enactment of meaningful tort reform measures that will help the civil justice system more equitably balance the interest of plaintiffs and defendants, diminish abuse of the tort system, and send clear signals about what type of conduct will subject defendants to liability.