As President of a woman owned small business supporting the Department of Defense, I am especially concerned at what I consider to be significant short sightedness in implementing a 3% withholding on Federal contracts. This program will end up costing the tax payers of this country more money while also potentially increasing unemployment.
As the economy has struggled, companies like mine have taken measures to cut our costs to the government and reduce our profit margin so that we may remain competitive. We cannot survive an additional 3% withholding and will be forced to increase the cost of our services by that degree. This will needlessly cost the government and tax payers more.
For those companies that try to maintain their current billable rates, they will be forced to take internal cost cutting measures--most of which will be related to personnel cuts. This will both increase unemployment and cost the government money both in paying out unemployment benefits and in not receiving income taxes from these displaced workers.
For the health and wellbeing of our country, please repeal what is a bad ruling.
Comment on FR Doc # 2011-10758
This is comment on Proposed Rule
Withholding on Payments by Government Entities to Persons Providing Property or Services
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