The Senate voted 94-1 in favor of advancing H.R. 674, a bill that would repeal an onerous 3% withholding requirement, set to take effect on all government contracts starting in 2013. However, a great deal of debate looms on the horizon as senators from both parties aim to address the bill’s pay-for provisions and also tack on a previously reported jobs plan that would benefit businesses that hire veterans.
Tonight’s vote was on a motion to proceed on H.R. 674, not a final vote of approval. Nonetheless, government contractors eager to see the repeal of the 3% withholding requirement can take heart in the motion’s overwhelmingly bipartisan support.
The debates that will occur this week will have more to do with how the repeal is paid for, rather than the actual repeal itself, and with any luck, the near-universal distaste for the 3% tax will translate to a relatively uneventful ride through the amendment process and swift passage.
NACM congratulates the Senate on agreeing to move forward on this piece of common sense legislation and hopes that both chambers of Congress can work together on making the repeal of the 3% withholding requirement a reality.
Jacob Barron, CICP, NACM staff writer