[Congressional Record Volume 157, Number 165 (Tuesday, November 1, 2011)]
[Extensions of Remarks]
[Page E1967]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               3% WITHHOLDING REPEAL AND JOB CREATION ACT

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                               speech of

                        HON. CAROLYN B. MALONEY

                              of new york

                    in the house of representatives

                       Thursday, October 27, 2011

  Mrs. MALONEY. Mr. Speaker, I rise in strong support of H.R. 674, a 
bill that repeals the Internal Revenue Code provision requiring 
federal, state, and local governments to withhold 3 percent on payments 
made to government contractors.
  This is an onerous requirement that I have been working with my 
bipartisan colleagues to repeal.
  I have heard from a number of government contractors who have told me 
that the problem for them include:
  Most construction contracts average less than 3 percent profit.
  Tightened cash flow will restrict bonding capacity.
  Enforcement of current laws would ensure tax obligations are met.
  The law places an undue burden on S Corps and joint ventures.
  It is widely believed that this is misguided public policy.
  I am pleased that we are working together to repeal this burden and 
help American businesses during tough economic times.

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