Senate Moves Ahead on Contractor Tax Bill With Veterans Addition

The U.S. Senate voted to advance a bill repealing a requirement that the government withhold 3 percent of the value of contracts to prevent tax cheating.

The procedural move was approved 94-1.

Democrats plan to add to the legislation a provision that would give companies tax credits to encourage hiring of unemployed veterans or recently discharged veterans.

“Members of Congress will get to say whether or not they think it’s a good idea to give companies an incentive -- an additional incentive -- to hire the men and women who have risked their lives for our country,” President Barack Obama said today.

The House of Representatives passed the contract withholding repeal bill on Oct. 27, by a vote of 405-16. Business groups including the U.S. Chamber of Commerce have urged the repeal of the 2006 requirement, which is scheduled to take effect in 2013.

The addition of the veterans’ provisions would require the House to vote again on the measure. A final Senate vote on the bill isn’t expected until at least tomorrow.

The bill number is HR 674.

To contact the reporter on this story: Richard Rubin in Washington at rrubin12@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net