The Small Business & Entrepreneurship Council (SBE) pushing two bills pending in Congress to support Small Governement Contractors

Congress’s campaign to close the so-called “tax gap,” the amount of money
businesses report on their tax returns verses what the really take in....

Three years ago, as part of the Tax Increase Prevention and Reconciliation Act of 2005, Congress required government agencies to withhold 3 percent of every payment made to federal contractors to make sure they paid taxes on the income. But a new study by the Department of Defense concludes that it will cost $17 billion over five years to collect just a fraction of that amount.

The Small Business & Entrepreneurship Council (SBE) has maintained from the outset that the cost to implement the 3 percent mandate would be staggering. Beyond that, it argued that the mandate would create serious cash flow issues for small government contractors, would prevent many from bidding, or would force them to raise prices. The council is pushing two bills pending in Congress, H.R. 1023 and S. 777, that would repeal the mandate. Read more...