Tax Policy

Acquisition policy and its tax implications and the execution of tax policy through government contracts can have significant impact on PSC Member companies. Contractors must be in compliance with federal tax laws, yet tax law complexity should not result in instances where contractors are penalized for good faith efforts to comply with tax laws. 

PSC partnered with the Government Withholding Relief Coalition (GWRC) to repeal the onerous 3% withholding requirement.


Rep. Gerry Connolly, D-Va., calls for the repeal of the 3% withholding requirement on the floor of the House of Representatives. PSC has worked with the Government Withholding Relief Coalition to overturn this burdensome requirement that would punish all government contractors for the actions of a few, and restrict cash flow at a time when many, particularly small, businesses face enormous challenges.