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Senate passes repeal of 3% withholding

Words: Mason Contractors/Public/News/20111111070000-1.jpg" width="600" height="338" border="0" alt="The U.S. Senate has voted to repeal the 3% withholding law." />
The U.S. Senate has voted to repeal the 3% withholding law.
The U.S. Senate voted 95-0 yesterday, with one Senator voting "Present," to repeal H.R. 674, the 3% withholding law on all federal, state and local government contracts.

The Senate amended the bill to include tax credits for companies that hire unemployed veterans and mandate a study of tax compliance by federal contractors. The Senate did not consider any amendments contemplated by Senate Majority Leader Harry Reid to continue to apply the withholding to delinquent taxpayers.

The legislation will now move back to the U.S. House of Representatives, where lawmakers passed a similar measure last month. President Barack Obama supports repealing the withholding law.

The MCAA has opposed the withholding and has urged Members of Congress to repeal this law. MCAA members are encouraged to write their Representatives today and ask them to support the repeal of the 3% withholding law.

More information about the 3% withholding tax can be found online at www.masoncontractors.org/3percent.
About: Legislative
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