Washington Summit is the Place to be in May

NUCA members who plan to come to this year's Washington Summit clearly understand the importance of this event. A large number of important issues will be considered early in the 112th Congress, and May is always a critical time. This year we will push a variety of measures to improve and expand underground and transportation infrastructure markets around the country. We will use the momentum we gained in the last Congress to repeal the awful "3 percent withholding" tax scheduled for implementation on January 1, 2012. If this requirement is not repealed, all federal, state, and local governments will have to withhold 3 percent of all payments to any organization that provides goods and services to them.

And, if NUCA and the hundreds of business organizations we work with haven't finished the job by May 10th, we'll have to continue to strongly oppose the "1099 reporting" provision that was stuck into last year's monstrous healthcare bill (see below for the latest). While it is unlikely that other harmful issues such as "card check" and OSHA reform will be positioned at a point where we'd have to take action, NUCA staff will be watching just in case. Any veteran of the Summit knows how critical personal, face-to-face visits are to advancing the issues of interest to any grassroots organization. But such a veteran would also tell you how much fun it is. We always love to see new people and introduce them to this bedrock activity of our democracy, so if you haven't come to a "fly-in" yet, get off the sidelines and get in the game. Time is of the essence on many of these issues - we hope you'll come and stand up for your industry. As we've reported, this Congress has 116 new lawmakers in it, all of whom need educating about the importance of this industry to the nation and the economy.

Don't forget - the highly valued Federal Issues Conference will kick off the Summit. The conference will feature three panels of government and industry experts speaking on issues of vital interest to NUCA. Whether the topic is the challenges facing infrastructure markets, the outlook for traditional infrastructure financing, new opportunities for private investment and other innovative financing, immigration reform or OSHA, these folks know Washington and will provide valuable information. The Washington Summit will take place May 10-12 at the Holiday Inn Old Town Alexandria, Va. See the NUCA website (www.nuca.com), call NUCA at 703-358-9300, or contact us by e-mail at eben@nuca.com or ben@nuca.com for more information.

House Tax Panel Passes "1099 Reporting" Repeal Legislation

Reflecting a big win on a core issue to NUCA members, the House recently passed legislation to remove a devastating provision that would increase operating costs and paperwork burdens on virtually all American businesses. The "1099 reporting provision" which was stuck into last year's massive healthcare law, will require businesses to track and report to the IRS most business-to-business transactions above $600 in a given calendar year. For many businesses, this will amount to hundreds of new reportable transactions, involving sending a 1099 to both the IRS and the reportable business. NUCA signed on to a letter of the Small Business Coalition on Affordable Healthcare, and sent an individual letter of support to repeal the 1099 language. NUCA's message was clear: "The unemployment rate in the construction industry remains above 20 percent. For underground utility and excavation contractors, unemployment is probably even higher. The last thing this industry needs is more paperwork to comply with burdensome and unnecessary tax provisions in a law that hurts small businesses in the first place.

The final vote on repeal legislation passed by an overwhelming 314-112 vote and Rep. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee and author of the bill was visibly pleased. "Clearly there is strong, bipartisan support to repeal the 1099 provisions so that small businesses can focus on what they do best - creating jobs," the chairman said. "With more than 70 percent of the House, including 76 Democrats voting for repeal of the 1099 provisions, I urge the Senate to move quickly to take up and pass this legislation so we can send a bipartisan bill to the President." House passage of this bill is a major landmark, but as always, we expect passage in the Senate to take considerably more time and effort.

Champions of "3 Percent Withholding" Reach out for Support

Two key lawmakers recently stood up again for American businesses and good old common sense - which is sometimes hard to find in your Nation's Capitol. Reps. Wally Herger (R-Calif.) and Earl Blumenauer (D-Ore.), sent a "Dear Colleague" letter to fellow House Members in support of legislation (HR 674) to repeal the dreaded "3-percent withholding" provision. This sweeping new requirement would mandate that all federal, state, and local governments withhold 3-percent from payments to organizations that provide goods and services. This unprecedented withholding mandate will affect the vast majority of government contracts as well as Medicare payments. NUCA has served as an active member of the Government Withholding Repeal Coalition since its inception, and we will remain active until it is fully repealed. Rep. Herger, the bill's author, and original cosponsor Rep. Blumenauer, are actively working to remove this provision before implementation. In the letter, the congressmen state that "many government contractors are small businesses that operate with very low profit margins, often less than 3-percent. For these businesses, the 3-percent withholding would create severe cash flow problems, creating new barriers to job creation." NUCA applauds these fine lawmakers and we're honored to call them true friends to the utility and excavation industry.