Senate Must Expeditiously Repeal 3% Withholding Tax
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On Capitol Hill today, Sen. Scott Brown (R-MA), along with members of the Chamber's Small Business Council and the Government Withholding Relief Coalition, called for the Senate to take up the bipartisan bill to repeal the 3% withholding tax that passed the House of Representatives last week overwhelmingly (405-16) and also has the backing of the White House.
As reported in Free Enterprise magazine, current law
requires that federal, state, and many local governments withhold 3% of payments for goods and services as a way to close the gap between taxes owed and taxes collected. It also applies to Medicare payments and farm payments. Implementation of the rule has been delayed repeatedly and currently is scheduled to take effect on January 1, 2013.
Sen. Brown asked "leaders of both parties in the U.S. Senate to bring this jobs bill to the floor for a clean vote. Currently, this is the only jobs legislation that has bipartisan majorities in both chambers as well as the President’s support."
Giovanni Coratolo, Vice President of Small Business Policy for the Chamber, pointed out at the press conference that this bill transcends party lines and warned of what will happen if the Senate does not act:
[T]the 3% withholding tax will have a dramatic, negative impact on honest taxpaying businesses across the United States hurting their ability to create jobs. Local cities and counties will have to worry about whether they can afford to pay the higher prices for school busses or hire teachers, cash strapped colleges and universities will need to cut services or raise tuitions, the cost to build and repair roads and infrastructure will be more expensive, and yes, doctors and hospitals already frustrated with Medicare reimbursements will be even more challenges to take care of our seniors.
Repeal will provide greater certainty for businesses, doctors, farmers, state and local governments, and colleges and universities.
The Senate needs to pass the bill and repeal this piece of economic uncertainty hanging over businesses.