3% Repeal Update
Unless repealed by Jan. 1, 2013, the 3% withholding tax will go into effect. The will mandate that federal, state, and local governments withhold 3% from payments for goods and services. This will not only cause a paperwork burden for the government and companies who provide goods or services to them, but force firms to increase costs to offset the impact of delayed payments and disrupting businesses’ cash flows. PHCC National is working very closely with the U.S. Chamber of Commerce in a massive grassroots campaign to repeal the tax.
PHCC Members’ Voice is Heard
Of the 262 cosponsors on the repeal legislation in the House, 37 cosponsors were a direct result of PHCC members’ involvement.
Push For 1,000
PHCC members will soon be called on to voice the PHCC’s collective support for repeal by urging their respective Member of the House of Representatives to vote to support the repeal . The legislation (H.R. 674) will soon move to the House floor for consideration and votes and PHCC members will be alerted to write in. PHCC needs to generate 1,000 letters to Members of the House of Representatives.
The House Ways & Means Committee will take up the repeal this week. The bill will then move to the House floor within the next two weeks. From there, and if the legislation is passed overwhelmingly, the Senate will begin to move repeal legislation.