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Friday, November 11, 2011

Senate Passes 3% Withholding Tax Repeal

Small business owners are benefitting from a burst of bipartisan activity to promote certainty, business confidence and economic recovery. Repeal of the 3 percent withholding tax mandate is one such initiative that certainly makes economic and fiscal sense.

With the cost of the mandate far exceeding anticipated revenue gains, and small firms becoming less able to compete for government contracts due to new costs and cash flow constraints spawned by the withholding tax, repeal makes absolute sense. Taxpayers and government at all levels also benefit from repeal.

As SBE Council President & CEO Karen Kerrigan noted in a media release following passage of the legislation, small business owners look forward to President Obama signing this important legislation. The President endorsed the legislation as it moved through the U.S. House and of course continued his support during Senate debate.

There are other opportunities for Democrats and Republicans to work together on legislation. For example, the House-passed "Entrepreneurs Access to Capital Act," H.R. 2930, received over 400 votes.

"This innovative legislation will unlock large pools of capital for small business owners while protecting investors," says Kerrigan. "Entrepreneurs with scalable businesses are in need of capital to grow and create jobs. Now is the time to act on this critical piece of legislation," she added.

With passage of the 3% withholding tax repeal legislation, SBE Council look forward to the Senate extending its streak of bipartisanship by focusing on other critical small business issues that have already passed the House.

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