CompTIA Applauds Senate’s Repeal of 3 Percent Withholding Requirement

11/11/2011 10:54:05 AM

Washington, D.C., November 11, 2011– The Senate has voted to repeal the 3 percent reporting requirement enacted into law under the "Tax Increase Prevention and Reconciliation Act of 2005." This provision was widely disliked and had never actually become effective, as its start date had been periodically deferred. The requirement would have mandated federal, state and local governments withhold 3 percent on the majority of their contract payments, including those to small businesses. Todd Thibodeaux, president and chief executive officer, CompTIA, made the following statement in response to the Senate vote.

“The strong bipartisan support for the repeal of the 3 percent reporting requirement indicates that Senators from both sides of the aisle recognize the potential harm this provision would cause to small businesses across the country.

“Many small IT companies work with federal, state and local governments every day to provide services for the public sector. Eliminating the 3 percent withholding requirement preserves small IT firms’ place in government contracting while maintaining the quality technology services these businesses provide to keep our digital infrastructure safe and secure.

“Federal government procurement opportunities can be difficult for small businesses to secure under any circumstance, but the 3 percent withholding requirement would have made it nearly impossible from a business perspective. Eliminating this burdensome provision opens the door for more small businesses to remain competitive and grow their businesses – hiring more workers and boosting the economy.

“CompTIA thanks the Senate for repealing the 3 percent withholding requirement and preserving current tax compliance measures without unfairly penalizing small businesses. Small businesses remain an engine for economic revitalization and innovation, and the repeal of the 3 percent withholding requirement will allow these small firms to pass along their knowledge and expertise to our nation’s local, state and federal governments more effectively.”

CompTIA is the voice of the world’s information technology (IT) industry. As a non-profit trade association advancing the global interests of IT professionals and companies, CompTIA is the recognized authority for IT education and credentials and the primary advocate for IT businesses and workers. Through its foundation, CompTIA also enables disadvantaged populations to gain the skills they need for employment in the IT industry. CompTIA’s vision of the IT landscape is shaped by more than 25 years of global perspective and more than 2,000 members and 1,000 business partners. For more information, visit www.comptia.org or follow CompTIA on Twitter at http://www.twitter.com/comptia.

CompTIA’s Public Advocacy group focuses on a broad array of issues affecting the IT industry, with particular emphasis on representing the interests of small and mid-sized IT companies and entrepreneurs. Areas of focus include workforce education and training, tax matters, access to capital, health IT, export promotion, procurement, cybersecurity and smart technologies.

CompTIA

Washington D.C.