Published in Last Word
ACEC is working with a bipartisan group of Senators to oppose a proposal in Congress that would limit the use of cash accounting.
ACEC urges members to contact their Senators before July 18 on this issue. Click here to access a sample letter.
The proposal would limit cash accounting to firms with less than $10 million in revenues and to sole proprietors. Under the cash method of accounting, firms pay taxes on income when it is actually received, whereas the accrual method requires taxes to be paid when the work has been done even if the invoice has not been paid. This change would impose significant cash flow problems on many ACEC member firms because the vast majority of their costs are labor-related and must be paid well before firms are paid by their clients.
Senators Sherrod Brown (D-OH), Pat Roberts (R-KS), Angus King (I-ME), and Ron Johnson (R-WI) are gathering signatures on a bipartisan letter opposing the cash accounting changes. Current signatories on the letter, in addition to those listed above, are: Senators Tammy Baldwin (D-WI), John Barrasso (R-WY), Mark Begich (D-AK), Cory Booker (D-NJ), Thad Cochran (R-MS), Susan Collins (R-ME), Michael Enzi (R-WY), Charles Grassley (R-IA), Kay Hagan (D-NC), Heidi Heitkamp (D-ND), James Inhofe (R-OK), Mike Johanns (R-NE), Amy Klobuchar (D-MN), Mary Landrieu (D-LA), Jerry Moran (R-KS), Mark Pryor (D-AR), Brian Schatz (D-HI), John Thune (R-SD), Mark Udall (D-CO), David Vitter (R-LA), and Roger Wicker (R-MS).
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