Senate Clears Procedural Hurdle to 3 Percent Tax Withholding Repeal

Monday evening, the U.S. Senate  voted 94 to 1 to proceed to consideration of H.R. 674, a bill to repeal the 3 percent income tax withholding law, with a final vote on passage due by Wednesday. Senator Jay Rockefeller (D-WV) was the single vote against proceeding. Last week, AGC reported that Senate Majority Leader Harry Reid (D- Nev.) was considering offering an amendment to H.R. 674 that would continue to apply 3 percent withholding to contractors found delinquent in their taxes. It now appears Senator Reid may not offer his amendment; rather, Senate Democrats are expected to offer an amendment that would create tax credits for businesses that hire veterans. The latter is supported by President Obama and should receive bipartisan support in the Senate. Should the veteran hiring tax credit amendment succeed, the U.S. House of Representatives would have to vote on the amended bill without further changes before it could be sent to the President for his signature. The House passed H.R. 674 by a vote of 405 to 16 on Oct. 27. To view the official statement issues by AGC about the vote, click here. To get involved, click here. For more information, contact Karen Lapsevic at 202-547-4733 or lapsevick@agc.org.