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BUSINESS GROUP FIGHTS WITHHOLDING ON GOVERNMENT PAYMENTS

Posted by Admin Posted on Mar 03 2011

In 2006, the Republican Congress passed and President Bush signed the Tax Increase Prevention and Reconciliation Act.  Part of that act required federal, state and local government to withhold 3% from payments to government contractors, and on Medicare, farm and other government payments.  The effective date was deferred to 2012.

Business and government groups are fighting the withholding requirement based on the cost of implementation and the negative impact on payee cashflow.

 

 

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