Repeal of contractor tax is 'common sense approach'

Monday - 11/14/2011, 5:35pm EST

Trey Hodgkins, senior vice president for procurement policy, TechAmerica

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The 3 percent withholding rule for contractors is close to being repealed. Both the House and Senate have approved a repeal of the rule and the President is likely to sign the repeal.

The original law would have withheld 3 percent of contractors' payments as way to nudge companies to fully pay their taxes, but lawmakers now say it would fence off money those firms could better use to hire more workers.

Trey Hodgkins, senior vice president for procurement policy at industry group TechAmerica, joined In Depth with Francis Rose to explain why the repeal is good news.