US 3% witholding tax?

[nihil]

This is interesting. The US government witholding 3% tax from contractors:

http://www.siaonline.org/government/witholding.cfm

http://www.withholdingrelief.org/portal/gwrc/default

What amazes me is the DoD claiming that it will cost them $17billion to implement

[brokencrow]

I don't know what the problem is, nihil.

It seems altogether compliant with the Law of Unintended Consequences.

[nihil]

It seems altogether compliant with the Law of Unintended Consequences.

It's not the 3% it's the additional cost of collection. Collection costs depend on number of transactions and accounting complexity, not on the actual value of the transactions.

[Computernerd22]

nihil, like what it is yo? Theirs good news us AMERICANS get an additional 600 bucks back, this year. Thats becuase we are phucking gangsta. Dude when you comming to the states?

[nihil]

Hi CN22,

The idea of that is to stimulate the economy............. whose? .........China's?

My concerns regarding the 3% witholding tax are:

1. It is completely new and there is no mechanism to administer it. That will be costly to set up.

2. As it only applies to people contracting to the U.S. government, who will face these costs? You got it................ the U.S. taxpayer

Thats because we are phucking gangsta.

You must be referring to people operating in the sub-prime loans market before it collapsed. Lend money to people who cannot afford to repay it at rates they cannot afford either......... way to go? But I totally agree, loan sharks are gangstas

Taxation is like IT, it should be left to professionals.

[fourdc]

Nihil,

>>What amazes me is the DoD claiming that it will cost them $17billion to implement<<

These are the same people who pay $600 for toilet seats and developed the SR71 Blackbird with no budget. It makes me wonder what the $17B is really funding, rebuilding the Officer's Club in the green zone?

[MrLinus]

This will probably eat up all the "savings" incurred by the change in the time adjustments.