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No. 11-201 Date of Adoption� W 2011
SUPPORTING H.R. 674 (S -1726) REPEALING 3 PUBLIC CONTRACTS
IRS WITHHOLDING MANDATE
WHEREAS, Senate Bill S -1726, introduced by Senate Minority Leader Mitch
McConnell, would repeal the burdensome three percent withholding requirement
originally enacted in Section 511 of the Tax Increase Prevention and Reconciliation Act
of 2005 (P.L. 109 -222); and
WHEREAS, unless repealed before January 1, 2013, the three percent withholding will
have a dramatic, negative impact on local governments; and
WHEREAS, under this provision, the Internal Revenue Service (IRS) was given new
broad sweeping authority to hold three percent of nearly every transaction between the
public and private sector- giving the federal government an interest free loan; and
WHEREAS, this mandate is anti - stimulus in that it removes money from local
economies and sends it to the IRS; and
WHEREAS, Section 511 is also inflationary, it adds three percent to the cost of almost
all goods and services procured by almost all governmental agencies at the federal, state
and local levels; and
WHEREAS, the New Jersey League of Municipalities strongly supports H.R. 674 and
Senate Bill S -1726 as released and has requested that all of its members go on record
similarly supporting the same as repealing Section 511 will help the economy.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Council of the Borough
of Carteret, County of Middlesex, State of New Jersey, as follows:
That the Borough of Carteret hereby supports H.R. 674 and Senate Bill
S1726 which was recently introduced by Senate Minority Leader Nlitch
McConnell.
2. That a copy of this Resolution be forwarded to the New Jersey League of
Municipalities, Senator Frank Lautenberg, Senator Robert Menendez and
Congressman Albin Sires.
Adopted this 20" day of October, 2011
and certified as a true copy of the
original on October 21, 2011.
KATHLEFN M. B ffNEY NiNIC
MunicLpa (IerK
RECORD OF COUNCIL VOTE
COUNCILMAN
YES
NO
NV
A.B.
COUNCILMAN
YES
NO
I NY
I A.B.
BELIDD
X
lQ2<It
X
DIAZ
X
NTLES
X
DItASGI0
X
Sf AFZ
X
X - Indicate Vote AB - Absent NV - Not Voting XOR - Indicates Vote to Overrule Veto
Adopted at a meeting of the Municipal Council
OcL 20, .�11
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