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Senate moves legislation to repeal withholding tax

Washington—An ADA-supported business coalition is taking nothing for granted after U.S. Senate 95-0 approval Nov. 10 of legislation to repeal a 3 percent withholding tax scheduled to take effect Jan. 1, 2013.

The Senate returned the measure to the House of Representatives, which approved similar repeal legislation Oct. 27 by a 405-16 margin, for final approval before sending it to the president for his signature. With the House, Senate and White House in accord, it’s all but final. “While H.R. 674 passed overwhelmingly before in the House, we do not want to take anything for granted,” said a representative of the U.S. Chamber of Commerce-organized Government Withholding Relief Coalition. “Let’s see this through and keep pressure on by urging quick and decisive final action in the House.”

The Senate bill includes amendments the House must consider before final passage. 

The Association signed onto the broad-based coalition of nearly 160 business, college and university, health care, farm, manufacturing, trade, transportation and other organizations. A never-imposed 2005 tax law would require federal, state and some local governments to withhold 3 percent of payments of more than $10,000 to government contractors. A $10,000 single payment criterion is more likely to affect large group or corporate dental practices submitting claims for several dentists at the same time than most general practice dentists.