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Analysis: Repeal of tax withholding law good news for both industry, government
Thursday - 10/27/2011, 4:24pm EDT
The law would have raised $11 billion in revenue over the next decade, according to Congress' Joint Committee on Taxation. But repeal has received bipartisan support because lawmakers view the money contractors keep as a potential job creator.
The repeal "not only keeps cash flow going to companies but avoids agencies having to spend millions of dollars to develop their own internal systems to comply with the withholding requirement," Chvotkin said.
The original intent of the law does not address a fundamental issue, which is, he said, "how do you make sure that contractors are paying their fair share of taxes?"