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Contractor Withholding Tax Repeal Sails Through House

In a rare moment of bipartisan unity, the House approved, 405-16, legislation (H.R. 674) to repeal the three percent government contractor withholding tax scheduled to take effect in 2013.

While bipartisan support has long existed for abolishing the burdensome requirement, the challenge was finding a way to offset the tax’s $11 billion in projected revenues. H.R. 674 is paid for by adjusting the income qualifications for determining eligibility for certain healthcare-related programs, such as Medicaid. The Obama administration supported both repeal of the three percent government contractor withholding tax and the offset.

Now that the repeal has cleared the House, it is critical that the Senate follow the House’s lead and eliminate this unnecessary tax. To encourage your senators to pass the measure please visit www.ARSAaction.org.

~~~ posted 10/27/11 ~~~



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