Issue link: http://read.dmtmag.com/i/134956
Industry Beat AED Urges Congress to Fix Archaic Tax Code At a House Small Business hearing, AED officer gives lawmakers the equipment business point of view. The overly complicated and uncertain tax code is undermining economic growth – that's what Tim Watters, AED Vice Chairman, told the House Small Business Committee on April 10. Watters, who is president of Hoffman Equipment in Piscataway, N.J., cited a recent AED tax survey outlining the construction equipment distribution industry's tax reform priorities and urged lawmakers to simplify federal tax laws to spur economic growth and job creation. "The Internal Revenue Code is a complex web and we've become tangled in it," Watters said. He pointed to the example of the Affordable Care Act's new 3.8 percent tax on unearned investment income, which was created to ensure individuals who derive their earnings from passive sources, like stocks and beach houses, can't avoid paying Medicare taxes. "Unfortunately, because the passive income rules are so arcane, even the tax experts on the Hill who drafted the law didn't understand that brick and mortar companies that rent equipment would also be AED Vice Chairman Tim Watters testifies about the complicated tax code during a Congressional hearing on April 10. subject to the tax," Watters told lawmakers. AED is now working to resolve the problem for its members. ASC and Swanston Equipment Companies Canadian Budget Includes Realign Distribution of Volvo Construction $47 Billion in Funding for Equipment in North Dakota, Western Minnesota Infrastructure ASC Construction Equipment has taken over heavy equipment (motor grader, articulated hauler, excavator, and wheel loader) sales and service of the Volvo brand, as well as the utility product line (backhoe, compact wheel loader, compact excavator and skid steer loader) from Swanston Equipment Companies. Swanston Equipment Companies, with a long 77-year history in the region, will continue to offer customers the Volvo paving equipment product line, which includes asphalt pavers, milling and compaction. Volvo-trained heavy equipment technicians, as well as sales personnel, will remain in place and are transitioning to ASC, thus avoiding disruption to customer sales and service. ASC, one of Volvo's largest dealers in North America, now occupies the newly opened state-of-the-art facility in Bismarck, N.D., and is temporarily sharing facilities in other key locations with Swanston. "We truly are working together with Swanston to better serve Volvo customers in the region," said Brad Stimmel, president of ASC. "We are going to build on Swanston Equipment Companies' great tradition by leveraging our Brad Stimmel experiences and resources and hope to accelerate the growth of Volvo's success in North Dakota and western Minnesota." "This agreement will allow us to focus on the distribution and support of paving machinery products to customers in this region," said Mike Swanston, president of Swanston Equipment Companies. "We remain fully committed to the Volvo product and look forward to continuing to support Volvo's customers in the future." 14 | www.cedmag.com | Construction Equipment Distribution | June 2013 14_industry beat_KP.indd 14 Canada's 2014-'15 budget includes more than $53 billion in investments over 10 years, and more than $47 billion in new funding in support of local and economic infrastructure projects. Highlights include: n $32.2 billion over 10 years under a Community Improvement Fund to build roads, public transit, recreational facilities, and other community infrastructure across Canada n $14 billion for a new Building Canada Fund to support major economic projects of national, regional, and local significance n $1.25 billion for the renewal of the P3 Canada Fund to continue supporting innovative ways to build infrastructure projects faster and provide better value for Canadian taxpayers through publicprivate partnerships The plan will also provide funding for expanded skills and apprenticeship training programs. AED has ramped up its advocacy activities in Ottawa and the equipment industry is playing a more visible role in the Canadian policy process than ever before. 5/31/13 12:18 PM