Take Action Today - House Plans Vote to Repeal 3% Withholding

The U.S. House of Representatives is expected to begin consideration of a bill to repeal the 3 percent withholding mandate next week. The bill will first be considered by the House Ways and Means Committee, followed by a vote on the House floor as early as the week of Oct. 24.

As you know, starting Jan. 1, 2013, all federal and state contracts for goods and services will be subject to a 3 percent income tax withholding on each and every payment over $10,000 to a contractor. The requirement also applies to large local governments that make $100 million or more in annual expenditures for goods and services. This mandate will be bad for construction and must be repealed now.

We need as many Representatives to vote for the bill as possible to send a strong message to the Senate to follow suit. That is why we are asking you to contact your Representative today to urge them to cosponsor and support passage of H.R. 674 – even if you have already and even if your Representative is already a cosponsor – and to encourage your employees to do the same.

Below are four suggested ways to make contact with your Representative:
Send a letter using AGC’s Legislative Action Center.
Schedule a meeting with your Representative during the District Work Period the week of October 17. Click here for background and talking points.
Call your Representative by dialing (202) 224-3121 and asking for your Representative’s office. Click here for a phone script template.
Tell us your story by replying here. Your emails will be shared with our allies on Capitol Hill to support repeal.

Use AGC’s 3 percent withholding website to find additional resources, including talking points, IRS regulations, videos on the impact of this legislation, letters sent to Congress by AGC, and ways to become involved.

Click on your state to find out if your Representative has yet to cosponsor H.R. 674.
For more information, contact Karen Lapsevic at 202-547-4733 or

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