Press Room

NACM has a wealth of member experts in the fields of business-to-business credit and law. Consider using NACM as a resource in the development of your next business story.

Media Contact: Caroline Zimmerman, Editorial Director, 410-740-5560, carolinez@nacm.org

NACM Welcomes Final Approval of 3% Withholding Repeal

on .

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.

NACM Congratulates Senate on Approving 3% Repeal

on .

Eagerly anticipates House passage

The National Association of Credit Management (NACM) congratulated the Senate today on their unanimous approval last week of legislation that would repeal the 3% withholding tax. The bill, H.R. 674, is now pending the House, where it is expected to be approved shortly.

If a repeal is not signed into law, then a 3% withholding tax would be levied on the value of most local, state and federal government contract. Luckily, it seems that Congress has finally summoned the political will necessary for a full repeal of this widely unpopular tax, instead of more stopgap delays in the tax's implementation.

"NACM and its constituency of trade credit grantors have fought for 3% repeal since the tax was enacted in 2006," said NACM President Robin Schauseil, CAE. "It's good to see that Congress has finally realized what these companies have known all along: that cash flow is a business' lifeblood, and that taking away 3% of it to ensure contractor tax compliance would do more harm than good."

NACM Applauds House for Repealing 3% Withholding Tax

on .


Hopes Senate will quickly follow suit upon their return

Columbia, Maryland: October 31, 2011-The National Association of Credit Management (NACM) applauded the House of Representatives last week, after their approval of H.R. 674, a bill that would finally repeal the 3% withholding tax.

In a bipartisan landslide, the House voted 405-16 in favor of repeal. NACM hopes that the Senate quickly follows suit when they return from recess today.

"The House's repeal of the 3% withholding requirement is a step in the right direction for America's trade creditors and small businesses," said NACM President Robin Schauseil, CAE. "The Senate should recognize the dangers that the 3% tax poses to the nation's continuing economic recovery, and pass a full repeal as quickly as possible."

NACM Announces Support of Chapter 11 Bankruptcy Venue Reform Act

on .

Association for trade creditors has long supported sensible venue reform

Columbia, Maryland: September 8, 2011—The National Association of Credit Management (NACM) offered its support to H.R. 2533, the Chapter 11 Bankruptcy Venue Reform Act, introduced in the House of Representatives by Reps. Lamar Smith (R-TX) and John Conyers, Jr. (D-MI).

NACM’s membership is specifically comprised of unsecured trade creditors, many of whom are smaller businesses with limited budgets for travel. It is these smaller firms that stand to benefit greatly from the provisions contained within the Chapter 11 Bankruptcy Venue Reform Act, which seeks to end the practice of “forum shopping,” whereby debtors can file in a district to which they have very little connection, far away from their headquarters or principal place of business. This practice disenfranchises smaller creditors by making it more difficult for them to participate in the filing process, ultimately reducing a trade creditor’s chances of recovering what they’re owed.

NACM Hopes the End is Near for the 3% Withholding Tax

on .

Recent Push by Lawmakers for Full Repeal is Welcome News to NACM and Trade Creditors

Columbia, Maryland: September 20, 2011—Following recent developments in the House of Representatives, the National Association of Credit Management (NACM) expressed its hopes that Congress would finally repeal the pending 3% withholding tax. The withholding requirement would be levied on the value of most contracts for goods and services between businesses and federal and state governments, as well as local political subdivisions with contracting expenditures of $100 million or more.

“NACM has opposed this withholding requirement since it was enacted in 2006,” said NACM President Robin Schauseil, CAE. “Hopefully, the encouraging comments made by lawmakers like Rep. Mike Mulvaney (R-SC), who rightly described the tax as ‘job-crushing,’ and House Majority Leader Eric Cantor (R-VA), who has signaled that repeal will be on the House’s agenda this fall, ultimately mean that the end of the 3% withholding tax is near.”

National Association
of Credit Management

8840 Columbia 100 Pkwy.
Columbia, MD 21045
Phone: 410-740-5560
Fax: 410-740-5574

Let's Get Social!

NACM's Preferred
Software Providers

Discover More About NACM

Credit Congress
NACM's Annual Conference

Our History
Over 100 Years of History