| Weekly Update from Sam |
| Dear Friends,
After being deferred three times since its creation for being such bad policy, my House colleagues and I voted to repeal the onerous 3% withholding policy once and for all on Thursday. The new House majority has been focused on jobs since day one— in fact, repeal of the 3% withholding marks 16 separate ‘jobs’ bills the House has passed that can grow our economy and help create millions of jobs.
Compliance with this withholding tax will impose significant financial burdens on both the public and private sectors, adversely affecting job creation and economic growth at a time when we can least afford it. It will also further limit the cash flow of small companies that operate with thin margins in a difficult economy. Startups and small firms with a high volume of government contracts will be particularly disadvantaged.
The House Small Business Committee has taken an active role in pushing for full repeal. During a hearing back in May, we heard firsthand from small business owners who were worried about making payroll for their employees or even considering having to take out a loan to make ends meet if this provision was enacted.
That’s why the full repeal of this tax is needed, once and for all. I encourage the Senate to do the right thing and act quickly to pass this bill that will provide more certainty for the thousands of businesses that contract with federal, state and local governments.
Sam Graves
Chairman
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Latest Committee Action
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On Wednesday, Chairman Graves held a full committee hearing to examine the Small Business Administration's (SBA) programs that provide capital to small business. SBA Administrator Karen Mills and private sector partners of the SBA provided testimony. Witnesses discussed how important access to capital is vital in order to grow and hire more employees.
On Thursday, Investigations, Oversight and Regulations Subcommittee Chairman Mike Coffman (R-CO) held a hearing to examine the problems of fraud and misrepresentation in small business contracting programs and how compliance can be better ensured. Small Business Administration (SBA) Inspector General Peggy E. Gustafson and General Services Administration Inspector General Brian D. Miller discussed ways to protect legitimate businesses, while cracking down on bad actors. |
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Notable Op-Eds
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The 3% Withholding Is Yet Another Burden For Small Businesses
By Chairman Sam Graves
October 25, 2011
3% Withholding Hurts Small Businesses
By Rep. Richard Hanna
October 26, 2011
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News From Washington
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On Wednesday, the House passed the Southeast Arizona Land Exchange and Conservation Act of 2011 (H.R. 1904) by a vote of 235-186. This legislation would open up the third largest undeveloped copper resource in the world, create thousands of jobs (roughly 3,700), generate billions in revenue and lead to greater national security.
On Thursday, the House approved H.R. 674, a bill to repeal the onerous 3% withholding requirement for contracting businesses, by a vote of 405-16.
Also on Thursday, the House approved H.R. 2576, a bill to amend the Internal Revenue Code of 1986 to modify the calculation of modified adjusted gross income for purposes of determining eligibility for certain healthcare-related programs, by a vote of 262-157.
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| October 28, 2011 |
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