Government Withholding Relief Coalition
We are still on track to have H.R. 674 on the floor of the House next week (see story below)…specifics TBD. Repealing the 3% Withholding Tax is one of NASCIO's legislative goals. We are working in the Government Withholding Relief Coalition to make this happen.
Efforts are gaining momentum in the Senate: As noted previously, Senate Republicans included repealing the 3% withholding tax in their jobs package and individual Senators continue to make the case for repeal. Also, Minority Leader Mitch McConnell (R-KY) introduced S.1726, the Withholding Tax Relief Act of 2011. This bill is identical to the text of S.164, introduced by Senator Brown (R-MA), which was referred to the Finance Committee. Leader McConnell also started Rule 14ing S.1726.
House looks to repeal controversial 3 percent withhold law next week
By Pete Kasperowicz
House Republicans may take up bipartisan legislation next week to repeal a widely scorned law requiring all levels of government to withhold 3 percent of most payments to contractors, Medicare recipients, farmers and vendors.
The House Ways & Means Committee marked up the bill, H.R. 674, last week, and it's high up on the list of GOP priorities for legislation to help create the conditions for job growth. As of the middle of this week, House aides said GOP leaders seemed to be shooting for floor action next week.
The withholding rule became law in 2005, and was meant to help close the gap between taxes owned and taxes collected. But it was never implemented, and was delayed further under the 2009 stimulus bill until the end of 2011.
Republicans are not the only ones who oppose current law — even President Obama has called the possible withholding rules "burdensome withholding requirements that keep capital out of the hands of job creators." The IRS earlier this year delayed implementing it again until the end of 2012.
Read the complete story here.