The National Association of Manufacturers supports passage of H.R. 674, legislation to repeal the provision that requires federal, state and local government agencies to withhold 3 percent of their payments to businesses for goods and services.
In a letter to Congress from Aric Newhouse, NAM senior vice president for policy and government relations, the trade organization says: "The House has the opportunity to halt the ill-advised 3 percent withholding requirement that threatens jobs, competitiveness and investment for manufacturers. By essentially forcing companies to make an interest-free loan to the government, this requirement would increase the cost of doing business for thousands of manufacturers, leading to the loss of much-needed cash flow for business operations and job creation at a time when it is important to put Americans back to work.
"Permanent repeal of this provision will begin to restore confidence and certainty for manufacturers, which is critical for economic growth, job creation, and the ability to compete in the global marketplace. We urge all members of the House to vote to defend jobs and pass this bill. It's critical to all manufacturers that we lift the tax burden from job creators so that they may invest in themselves and continue to lead the American economy."
Click on the link to read the full test of the association's letter about H.R. 674.
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