Tax-Cheat Contractors Stay in U.S. Lawmaker Sights After Repeal
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On the verge of winning their fight to repeal a 3 percent withholding requirement, government contractors still must contend with U.S. lawmakers who are intent on finding other ways to curb tax cheats.
As chairman of the Senate Finance Committee in 2006, Charles Grassley, an Iowa Republican, helped create the withholding requirement to clamp down on tax evasion in the contracting sector. He now says the levy would be burdensome to businesses if it took effect in 2013.