HVAC Breaking News

July 7, 2008: New Bill Proposes Repeal of 3 Percent Withholding Tax on Public Contracts

July 7, 2008
/ Print / Reprints /
/ Text Size+

WASHINGTON - Sen. George Voinovich (R-Ohio) has introduced the Manufacturing, Assembling, Development and Export in the USA Tax Act - or MADE in the USA Tax Act. One of the provisions of the bill is to repeal the 3 percent withholding tax on government contracts scheduled to take effect on Jan. 1, 2011.

The primary purpose of the proposed legislation is to eliminate tax breaks that encourage companies to move jobs overseas. Voinovich noted that the additional revenues would be used to cut tax rates on large and small businesses that invest and create jobs in the United States.

Specific provisions of the MADE in the USA Tax Act include:

• Cutting the U.S. corporate tax rate from 35 percent to 28 percent;

• Increasing the domestic activities deduction for small businesses;

• Making permanent the 2003 expansion in small business expensing; and

• Repealing what Voinovich calls “the burdensome 3 percent withholding requirement for contractors.”

According to Voinovich, these tax reforms would help create higher paying jobs in the United States and would be paid for in a fiscally responsible manner by repealing a number of existing tax breaks that favor foreign competition and that encourage companies to move jobs and profits overseas.

“My colleagues and I have a historic opportunity, through fundamental tax reform, to transform the U.S. economy in a manner that will make our nation stronger and more prosperous for generations,” Voinovich said. “My legislation addresses one large piece of tax reform, in the hopes of starting a conversation that will inform policymakers as we develop a more comprehensive reform in the next couple of years.”

Publication date: 07/07/2008

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

You must login or register in order to post a comment.



Image Galleries

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.


NEWSMakers: Mark Satterfield

Mark Satterfield, founder and CEO of Gentle Rain Marketing Inc. and author of “The One Week Marketing Plan” talks about his book and the importance of HVAC blogging. Posted on Sept. 19.

More Podcasts


NEWS 09-22-14 cover

2014 September 22

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Venting R-22

The NEWS reported that a man received prison time for venting R-22. Should EPA step up enforcement?
View Results Poll Archive


2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to ACHRNews.com. Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con