Economic & Tax Policy

The U.S. Chamber, in union with 40 other business groups, is calling for the repeal of a new requirement mandating that federal, state, and local governments withhold 3 percent from payments for goods and services.  This unprecedented withholding mandate will affect all government contracts as well as other payments, such as Medicare and grants, starting in 2011.  Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222) enacted this requirement into law.

>> Read the one-pager (PDF)

>> Read the coalition letter (PDF)