Congratulates House for Unanimously Approving H.R. 674
Columbia, Maryland: November 17, 2011-Following the House's 422-0 approval of H.R.674 last night, the National Association of Credit Management (NACM) welcomed the imminent end of the 3% withholding tax, which it has staunchly opposed since its enactment in 2006. Although the tax was originally passed to address tax compliance, the devastating effect it would've had on contractor cash flow would've easily outweighed any potential gains.
However, with the House's unanimous approval of an amended version of H.R. 674, contractors, subcontractors and any other party involved on government projects can rest easy, knowing that their cash flow is safe from this harmful withholding requirement.