More in tax dollars

Last week, my son dropped an article on my desk concerning the 3 percent withholding law that requires any government entity with an operational budget of $100 million or more (federal, state or local) to withhold 3 percent from any contracts doing business with that entity. Before you say too bad for Big Business because they should pay, think twice. This 3% will not be absorbed any business entity but will be an added cost of doing business with the government entity. This added cost means it will cost more for the government vendor service which will cost each of you more in tax dollars.

I am certainly glad that my son was astute in bringing this to my attention since it is slated to be implemented in 2011. Many members of Congress have initiated the repeal of this 3% withholding but to date none has been effective in passage to eliminate this 3% withholding law. I emailed Congresswoman Ginny Brown Waite last week concerning this law. My email is below, along with the reply that I just received from the Congresswoman's office:

My email:

Congresswoman Ginny Brown-Waite:

What is your position on H.R. 1023? This bill would repeal the 3 percent withholding from any contractors doing business with any government agency (federal, state or local) with an operational budget of over $1million or more? If this allowed to go into affect in 2011 it will have devastating affect on our economy. Business will not absorb a 3% loss right off the top, and thus, these fees will be added to the cost of the service to the government entity.

The state of Florida is already charging a 1% transaction fee to all contractors which we have dubbed the "extortion fee" for doing business with the state of Florida. By the way, this 1% is included in the cost of doing business which drives our cost up to the state costing the taxpayers.

Anna Liisa Covell
A.L. Covell Electric, Inc.

Her reply:

Dear Anna:

Thank you for bringing your concerns to my attention. I appreciate the time you took to contact my office on this important issue and welcome the opportunity to respond.

As you know, the Tax Increase Prevention and Reconciliation Act of 2005 included a provision that would require government entities, whether federal or local, to withhold three percent of payments to certain vendors with whom they have contracts. In response, Congressman Kendrick Meek (D-FL) introduced H.R. 1023, which would repeal this language. Currently, the House Committee on Ways and Means is reviewing this legislation.

Like you, I worry about government regulations that adversely affect businesses, especially when they take the form of taxes, as is the case here. Should the House of Representatives vote on this measure, I will be sure to support it. In the meantime, rest assured that I will keep your concerns in mind as Congress examines our nation's tax policy.

Throughout my tenure in public service, I have always kept an open door and an open dialogue with my constituents. As Congress addresses the many challenges facing our nation, I hope you will continue to share your thoughts and views with me. Accordingly, I encourage you to visit my Web site at http://brown-waite.house.gov/ to email me and find useful information about our 5th Congressional District.
It is my honor and privilege to serve the people of Florida's 5th Congressional District and my offices and staff are here to provide you with any assistance you may need.

Sincerely,
Ginny Brown-Waite

Member of Congress