AGC recently joined Representatives Kendrick Meek (D-Fla.) and Wally Herger (R-Calif.), the sponsors of H.R. 1023, at a Capitol Hill event. H.R. 1023 would repeal the new requirement for federal, state and local governments to withhold 3 % from all payments for goods and services as a guard against possible business tax evasion.
The bipartisan event included members of the business community and demonstrated the broad implications that the 3 % withholding requirement would have on businesses, and state and local governments.
H.R. 1023 has nearly 160 cosponsors and the companion bill in the Senate, S. 777, has added three cosponsors to increase its total to seven. AGC continues to encourage members to engage their Representative and Senators on the consequences of withholding 3 % of a contract on the construction industry. The grassroots response in the last several weeks has led to greater awareness in Congress. AGC is working with the Finance and Ways and Means Committees to find alternatives to withholding while ensuring all contractors pay their taxes.
