Political Quotes

“Mr. President, I rise to express support for the pending legislation on a critical issue that addresses the burdensome cost of compliance with the Tax Code. H.R. 674 is modeled after bipartisan legislation Senator Brown and I introduced earlier this year to repeal the 3 percent withholding on government contractors that was enacted in 2005. I thank Senator Brown for his steadfast and persistent leadership on this issue as well as Senators Ayotte, Barrasso, Blunt, Burr, Chambliss, Inhofe, Johanns, Boozman, and Risch who are also cosponsors of the legislation. The 3 percent withholding provision mandates that Federal, State, and local governments withhold 3 percent of their payments to private contractors, including Medicare provider payments, farm payments, defense contracts and certain grants. According to the National Federation of Independent Business, ``the 3 percent withholding provision puts both an administrative burden on all parties involved and a strain on the daily operating cash flow of the businesses entering into these contracts.'' This provision would deduct 3 percent from those payments and send the cash to the IRS for what can be considered a downpayment on taxes. The following year, absent any outstanding tax liability, the contractors, or doctors in the case of Medicare, would then get the payment rebated to them. This forces legitimate small businesses who pay their taxes in a timely manner to loan the government 3 percent of a total contract.…”