U.S. Chamber of Commerce - February 15 - U.S. Chamber Commends the Introduction of Bipartisan Legislation to Repeal Withholding Mandate

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Thursday, February 15, 2007

U.S. Chamber Commends the Introduction of Bipartisan Legislation to Repeal Withholding Mandate

WASHINGTON, DC-The United States Chamber of Commerce today applauded Reps. Kendrick Meek (D-FL) and Wally Herger (R-CA) for introducing H.R. 1023, a bipartisan bill to repeal a costly and misguided tax withholding requirement on all government payments.

"The 3% withholding requirement has the effect of forcing honest, taxpaying businesses to provide the federal government with an interest-free loan," said Bruce Josten, Chamber executive vice president. "This bill is a much-needed remedy to this onerous mandate."

H.R. 1023 would repeal Section 511 of the Tax Reconciliation Act of 2005, which mandates that federal, state, and local governments withhold 3% from payments for goods and services starting in 2011. This unprecedented withholding requirement affects all government contracts as well as Medicare, grants, and farm payments.

The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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