Obama Signs Connolly Bill to Grant Tax Relief to Small Businesses

November 21, 2011 8:59 pmBy: 
photo

Rep. Gerald Connolly

Congressman Gerry Connolly joined President Obama at the White House today for the signing of legislation he cosponsored to repeal a burdensome 3 percent tax withholding regulation on private businesses and state and local governments.

The bill also contains provisions to put veterans back to work by providing tax credits for businesses that hire veterans and those with service-related disabilities, and establishing training programs to help veterans return to the civilian workplace.

Repeal of the 3 percent withholding provision is particularly important to Northern Virginia, with its large concentration of government contractors and vendors, Connolly said.

“Repeal of this withholding regulation will offer predictability to businesses that provide services to governments at every level.  It will free up capital that private sector employers can use to create jobs, increase wages, or fund business investments that will benefit our economy,” Connolly said.

“Repealing this regulation once and for all will provide businesses with greater predictability, remove undue government intrusion into their operations, and free up resources to expand and create jobs,” Connolly added.  If allowed to stand, the regulation would cost $75 billion over the next five years.

Nightmare

The withholding provision also creates an administrative nightmare for federal, state, and local governments, Connolly said.  “An estimated 20 percent of counties throughout the nation have more than $100 million in annual expenditures that would be subject to this withholding.”

Current law, passed in 2005 under the Bush Administration, placed a 3 percent tax withholding requirement on government contractors, vendors, Medicare providers, and farmers.  Since then, a number of bipartisan efforts in Congress have delayed implementation of the withholding regulation.  “The well-meaning intent of the law was to go after a small numbers of bad actors who were cheating the federal government, yet the broad-brush approach to the problem created more problems than it solved,” Connolly said.

The veterans’ provision of the bill – known as the VOW to Hire Heroes Act – was added to the legislation in the Senate and passed the House last week by a vote of 422-0.

“Our service members, our veterans, and their families have made incredible sacrifices for our nation.  The least we can do is take the steps necessary to make sure they have the training they need to get jobs to provide for themselves and their families,” Connolly said, noting that one-in-four Iraq and Afghanistan veterans are unemployed.  “By enacting this veterans’ jobs act, our nation is taking a major step forward to fulfill our responsibility to the men and women who fought to protect our values and our security.”

 

Comments

More Top Stories

  • Politics Top Stories Poll: Redskins should keep their name

    Poll: Redskins should keep their name

    By a margin of more than 3 to 1, Virginia voters say the Washington Redskins should not change the team name, according to a statewide survey released today by the Wason Center for Public Policy at Christopher Newport University. Overall, 71% of voters support keeping the name, which has been challenged as racist, while 21% said it should be changed. Asked if the name is offensive to Native American Indians, 68% said no, and 23% said yes. Political party identification […]

    Read more →
  • Business Real Estate Top Stories Median home prices up in parts of Northern Virginia

    Median home prices up in parts of Northern Virginia

    The Northern Virginia real estate market experienced some positive trends in August. According to The Long & Foster Market Minute reports, median sale prices increased in some parts of the region, and homes are continuing to sell at a rapid pace in the region, which includes the city of Alexandria, and Arlington, Fairfax, Loudoun and Prince William counties. Median sale prices in the Northern Virginia region increased in a number of areas compared to the same month in 2013. Prince William […]

    Read more →
  • Education Top Stories Fairfax middle & high schools would open later under new plan

    Fairfax middle & high schools would open later under new plan

    Fairfax County Public Schools (FCPS) Superintendent Karen Garza will propose a recommendation on later high school start times at the school board’s business meeting on Thursday, September 18, for the Board’s formal consideration at its October 23 meeting. The Superintendent’s recommendation, which would be effective for the 2015-16 school year, proposes high schools beginning between 8 and 8:10 a.m., and middle schools beginning at 7:30 a.m.  The recommendation includes the three secondary schools beginning their day on the high school […]

    Read more →
  • Politics Top Stories Wason Poll: Warner holds big lead over Gillespie in Senate race

    Wason Poll: Warner holds big lead over Gillespie in Senate race

    Democratic Sen. Mark Warner starts the post-Labor Day campaign season with a commanding lead over former National Republican Committee Chairman Ed Gillespie in Virginia’s U.S. Senate race, according to a statewide survey released today by the Wason Center for Public Policy at Christopher Newport University. Likely voters favor Warner by 53 percent, compared with 31 percent for Gillespie, according to the survey. Libertarian candidate Robert Sarvis holds a 5% share of the overall vote, with 11% undecided. Warner has stronger […]

    Read more →
  • Health Politics Top Stories McAuliffe announces plan to expand healthcare services

    McAuliffe announces plan to expand healthcare services

    Governor Terry McAuliffe Monday launched “A Healthy Virginia,” a 10-step plan to expand healthcare services to over 200,000 Virginians. It includes authorizations of four emergency regulations, one executive order, and other measures to expand healthcare to Virginia veterans, children, and families. “As governor, there is no greater responsibility than ensuring the health and safety of the citizens you serve. That is why I am so proud to stand here today and unveil ‘A Healthy Virginia’ – a plan that will improve […]

    Read more →
  • Springfield Top Stories Transportation New lanes speed Telegraph Road traffic in Springfield

    New lanes speed Telegraph Road traffic in Springfield

    Two months prior to the project’s final completion, the Virginia Department of Transportation has opened major improvements along Telegraph Road in Alexandria. Drivers on Telegraph now have two lanes in each direction between South Van Dorn Street and South Kings Highway, as well as the following new turn lanes to relieve backups accessing I-495 via South Van Dorn and the bottleneck south of the intersections: · Right-turn lane from northbound Telegraph Road to South Kings Highway · Right-turn lane from […]

    Read more →
  • Politics Top Stories McAuliffe boosts gas pipeline but environmental groups dissent

    McAuliffe boosts gas pipeline but environmental groups dissent

    To hear Gov. Terry McAuliffe tell it, the proposed Atlantic Coast natural gas pipeline is Virginia’s pathway to prosperity. To the Virginia League of Conservation Voters its value is “dubious.” “Dominion and its industry partners appear willing to invest billions on outdated ideas that will threaten Virginia’s natural landscape – with an outcome of a paltry 188 long-term jobs. It appeared that there were a greater number of industry lobbyists at today’s press conference than the number of permanent jobs […]

    Read more →
  • Chantilly Education Top Stories Local dancers win six world championships

    Local dancers win six world championships

    Chantilly-based Creative Dance Center Competition Team (CDC*CT) crowned its award-winning season at the Star Dance Alliance World Dance Championships held at the Meadowlands Exposition Center in Secaucus, New Jersey. The CDC*CT made it to the finals, securing six first place championships and two second place championships in various divisions. “I am extremely proud. I am very fortunate to work with a very talented staff of choreographers/teachers, the very best parents, and the most amazing group of dancers any studio director […]

    Read more →

The forecast for 22030 by Wunderground for WordPress