House Votes Against Death Tax Repeal and for Delayed Implementation of 3% Withholding
The House of Representatives voted on two tax issues vital to AGC members Wednesday including legislation to delay the implementation of the 3% withholding for one year, and the permanent repeal of the death tax.
Attached to an unrelated tax measure was a one-year delay of the new law requiring 3% of every payment be withheld from all contracts with federal, state and some local governments. Under current law, the withholding requirement begins on payments starting in 2011. The legislation to delay the implementation of the 3% withholding until 2012 passed by a vote of 212 to 173.
AGC will continue to work for a permanent repeal by urging the House to vote on H.R. 1023. H.R. 1023 is bipartisan legislation with 218 cosponsors that would simply repeal the law.
During a procedural motion on the same legislation, Republicans brought up a measure to permanently repeal the death tax. The tax is due to revert in 2011 to a 55 percent tax on anything over $1 million, an untenable outcome. AGC key voted the legislation, urging a yes vote on the procedural motion, nevertheless it failed by 196-232. AGC will continue to work for a permanent solution.
Click here to see how your member voted, and to read the letter AGC wrote to all House members.
For more information, contact Heidi Blumenthal at email@example.com or (202) 547-8892.
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