Withholding tax repeal heads to president

The House has passed a measure to repeal a 3-percent payment withholding tax.

The vote, taken Nov. 16, was 411 to 0.

The bill is now on its way to the White House for the President Barack Obama’s signature. The president has said he supports the repeal.

The bill (H.R. 674) would repeal a law that would require agencies to keep back 3 percent of the amount paid to contractors. The law was passed in 2006, but it has never been implemented.

Industry groups are pleased with the vote.

“We’ve been working to repeal this law since it was first passed and are elated with the overwhelming endorsement by Congress,” said Olga Grkavac, executive vice president for public sector at TechAmerica. “We are very much looking forward to watching the president sign the repeal of this law."

While the tax would bring in money for the government, industry groups suggested that the administrative costs to set up the systems to gather, track and later distribute the money again could well exceed what tax would bring in.

The Senate passed the bill Nov. 10 without a vote against it.

About the Author

Matthew Weigelt is a freelance journalist who writes about acquisition and procurement.

Featured

  • Cybersecurity

    DHS floats 'collective defense' model for cybersecurity

    Homeland Security Secretary Kirstjen Nielsen wants her department to have a more direct role in defending the private sector and critical infrastructure entities from cyberthreats.

  • Defense
    Defense Secretary James Mattis testifies at an April 12 hearing of the House Armed Services Committee.

    Mattis: Cloud deal not tailored for Amazon

    On Capitol Hill, Defense Secretary Jim Mattis sought to quell "rumors" that the Pentagon's planned single-award cloud acquisition was designed with Amazon Web Services in mind.

  • Census
    shutterstock image

    2020 Census to include citizenship question

    The Department of Commerce is breaking with recent practice and restoring a question about respondent citizenship last used in 1950, despite being urged not to by former Census directors and outside experts.

Stay Connected

FCW Update

Sign up for our newsletter.

I agree to this site's Privacy Policy.