House Postpones 3% Tax Withholding Requirement

In a victory for business, the House Ways and Means Committee voted last week to delay for one year the application of the 3% withholding requirement on government payments for goods and services.

 

With a vote of 23-18, the committee passed out the "Tax Collection Responsibility Act of 2007," including a provision to delay until January 2011 implementation of the 3% tax withholding requirement. Last year, the Chamber successfully prevented an attempt to move up the implementation date of this provision from 2011 to 2007. Recently, the Government Withholding Relief Coalition (GWRC) members, including the Chamber, sent a letter to the committee, applauding its decision to delay the tax.

 

Visit the GWRC Web site for more information.