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| May 6, 2011- Volume 3 - 9 |
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 MEMBERSHIP SURVEY |
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Last Week's Survey Results...
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ABC of Michigan wants to know...
What is the key issue confronting your business that ABC of Michigan can address in either the short or long term?
Click here to give your answer.
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ABC APPLAUDS HOUSE ON PASSAGE OF TAX PLAN |
Passage of Gov. Rick Snyder's corporate tax is a key step toward future job creation in Michigan. "The governor and legislative leaders have recognized what was needed to create jobs in the state," says Chris Fisher, president of ABC of Michigan. "And now the Legislature is doing its part to make it happen. With more than 82,000 jobs lost in the construction industry alone, our members are heartened by the bold attempt to rewrite the state's tax policy." More
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GOVERNOR SNYDER APPOINTS ABC MEMBER TO CONSTRUCTION SAFETY STANDARDS COMMISSION |
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ABC of Michigan would like to congratulate Mark Bulthuis of the Western Michigan Chapter on his appointment to the Construction Safety Standards Commission!
The commission brings together labor and management to develop safety standards to ensure a safe construction work environment in Michigan. More |
FEDERAL ESTATE TAX IS BACK |
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As widely anticipated, the "repeal" of the federal estate tax has proven to be short-lived. And there are some new wrinkles in our transfer-tax laws, courtesy of the 2010 Tax Relief Act. Here's what you need to know.
2010 Estates
Taxpayers inheriting assets from individuals who died in 2010 and the executors/personal representatives of 2010 estates must deal with new tax complexities. The new law has reinstated the estate tax for 2010. However, executors may elect out of the estate tax by choosing "modified carryover basis" treatment for assets that estate beneficiaries receive. Generally, using carryover basis means more capital gains tax for beneficiaries when they dispose of the assets. More |
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seen in Merit Minute!
Call ABC MI today to learn how you can advertise your company statewide using Merit Minute.
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230 N. Washington Square
Suite 202
Lansing, MI 48933
Ph. (517) 853-2545 Fax: (517) 853-2546 |
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About ABC of Michigan
Associated Builders and Contractors of Michigan is a statewide trade association, working in partnership with four local chapters, dedicated to providing Michigan with high-quality, affordable, safe and on-time construction. ABC of Michigan is an equal opportunity organization that opposes all discrimination in the construction industry including discrimination based on union affiliation. A leading construction industry voice with state government, ABC provides many member services including legislative advocacy, networking opportunities, member benefits, legal updates, business development and educational opportunities.
| | ABC APPLAUDS HOUSE ON PASSAGE OF TAX PLAN |
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Passage of Gov. Rick Snyder's corporate tax is a key step toward future job creation in Michigan. "The governor and legislative leaders have recognized what was needed to create jobs in the state," says Chris Fisher, president of ABC of Michigan. "And now the Legislature is doing its part to make it happen. With more than 82,000 jobs lost in the construction industry alone, our members are heartened by the bold attempt to rewrite the state's tax policy."
The House passed the reform package, which creates a 6 percent flat tax on C-corporations and will exempt many small businesses.
Fisher explained that restructuring Michigan's broken tax system will help clear the path to job growth.
"The current tax structure has discouraged growth by increasing taxes on Michigan commercial and industrial construction firms," he stressed. "Companies have been hesitant to hire employees in recent years because of the negative climate and the uncertainty."
A statewide survey of ABC member construction firms showed unanimous support for the plan with 77 percent of contractors indicating it would allow them to save or protect jobs.
ABC of Michigan's support for the tax plan received state and national press coverage by leading news outlets. The AP covered ABCMI reaction to the news resulting in coverage by Forbes, Businessweek, Money, NBC, CBS, Moneywatch, and Yahoo! Finance.
Click here to return to top of Merit Minute.
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GOVERNOR SNYDER APPOINTS ABC MEMBER TO CONSTRUCTION SAFETY STANDARDS COMMISSION
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ABC of Michigan would like to congratulate Mark Bulthuis of the Western Michigan Chapter on his appointment to the Construction Safety Standards Commission!
The commission brings together labor and management to develop safety standards to ensure a safe construction work environment in Michigan.
"... Mark will help ensure that Michigan will be a leader in developing necessary safety standards for our state's construction industry and the residents and businesses it serves," Snyder said.
Bulthuis, of Grand Rapids, is a licensed electrician, working as a project efficiency specialist with Parkway Electric & Communications LLC. With over 30 years of experience in the industry, Bulthuis serves as the chair of the West Michigan Chapter of the Association Builders and Contractors Safety Steering Committee. He earned a bachelor's degree from Calvin College.
Appointees serve three-year terms expiring March 18, 2014, and are subject to the advice and consent of the Senate.
If you see Mark, be sure to congratulate him!
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FEDERAL ESTATE TAX IS BACK
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As widely anticipated, the "repeal" of the federal estate tax has proven to be short-lived. And there are some new wrinkles in our transfer-tax laws, courtesy of the 2010 Tax Relief Act. Here's what you need to know.
2010 Estates
Taxpayers inheriting assets from individuals who died in 2010 and the executors/personal representatives of 2010 estates must deal with new tax complexities. The new law has reinstated the estate tax for 2010. However, executors may elect out of the estate tax by choosing "modified carryover basis" treatment for assets that estate beneficiaries receive. Generally, using carryover basis means more capital gains tax for beneficiaries when they dispose of the assets.
Tax Rates
For 2011 and 2012, a 35% maximum rate will apply for gift-, estate-, and generation-skipping transfer (GST) tax purposes. What will happen in the future is anyone's guess, but the law as currently written imposes a 55% maximum rate on taxable transfers made after 2012.
Exemptions
The new law provides an exemption (technically, an "applicable exclusion amount") of $5 million for a taxpayer's cumulative lifetime gifts and transfers at death. Basically, this means a taxpayer may transfer assets worth up to $5 million in total without having to worry about a liability for gift or estate tax. But the $5 million exemption is short-lived: It drops to $1 million after 2012 under the law as currently written.
Exemption Portability
Married couples have more to think about as they plan their estates. Another 2010 Tax Relief Act provision makes it possible for the estate of the last spouse to die to utilize any unused portion of the first spouse to die's exemption. Essentially, this means that married couples will be able to pass up to $10 million of assets to their families free of estate tax without the use of trusts or other planning mechanisms.
Example. Jack and Jill have two children and make no taxable gifts during their lifetimes. Jack dies in 2011 with an estate worth $5 million. He leaves everything to Jill. His estate claims the unlimited marital deduction for the amount passing to Jill, reducing his taxable estate to zero. Because Jack's $5 million exemption isn't used, it carries over to Jill. If she dies in 2012 with a $10 million taxable estate that she leaves to the children, her $10 million exemption (which includes the amount carried over from Jack) will shield the entire estate from tax.
Since the $5 million exemption and the portability provision are effective for 2011 and 2012 only under current law, a measure of caution is in order.
Click here to return to top of Merit Minute.
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