NJECPAC applauds the U.S. House of Representatives passage of a measure that would repeal the 3 percent withholding tax. The legislation would eliminate the 3 percent withholding tax requirement for work performed on Government Projects.
The U.S. House of Representatives today passed by the measure by a bipartisan vote of 405-16. The measure would repeal the requirement for federal, state and local governments to withhold 3 percent of payments to government contractors starting in 2013.
The measure now moves on to the Senate, where they continue to debate how to offset the $11 billion that the repeal would cost the Treasury in forgone revenue over 10 years. The U.S. Chamber of Commerce and other business groups have said that the withholding requirement is too onerous and that its repeal is one of the few areas of agreement between President Barack Obama and congressional Republicans.
"I am pleased to see that the House had the wherewithal to finally support a measure that we have been asking them to pass for a number of years" said NJECPAC Chairman Joe Coviello.
"The legislation passed by the House proves that our persistence and time spent in Washington each year at the IEC National Legislative Conference is time well spent. When passed by the Senate the repeal of this burdensome measure will benefit every Contractor" said NJECPAC Board of Governor member Bruce Kohan.
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