Associated Equipment Distributors

AED: Obama Budget Proposal Fails to Offer Long-Term Infrastructure Investment

On March 4, President Obama unveiled his fiscal year (FY) 2015 federal budget proposal that would use savings generated from corporate tax reform to invest billions in infrastructure investment and project delivery streamlining.

Unfortunately, the plan fails to offer new user fees to reestablish the federal Highway Trust Fund’s (HTF) long-term fiscal integrity. With the clock running down to the HTF’s collapse this summer, it’s highly unlikely the Fund can be preserved through a tax reform bill that has virtually no chance of passing in 2014.

AED is also extremely disappointed that the President’s budget doesn’t include a specific request for the new customs facility associated with the Detroit-Windsor bridge project. The new bridge is critical to both the U.S. and Canadian economies. Given that Canada has agreed to foot the bill for most of the $2.1 billion project, the administration’s failure to make the customs facility a budget priority is a major missed opportunity.

Lastly, the budget proposes repealing LIFO (“last in, first out”), a long-standing accounting method used by inventory-intensive small businesses like equipment distributors, as well a host of other tax provisions that encourage capital investment throughout the economy.

“In the weeks ahead, AED will be working to educate Congress and the administration about our concerns. We look forward to working with all parties to enact meaningful legislation this year to restore some semblance of economic certainty for our members and their customers,” said AED President & CEO Brian McGuire.

It is more important than ever that our nation’s leaders invest in the federal highway program. Visit today to urge your lawmakers to find alternative revenue streams for the Highway Trust Fund.