PHCC’s National Grassroots Network System… a true player in Democracy on Capitol Hill By Mark Riso Director of Government Relations Plumbing-Heating-Cooling Contractors – National Association
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Led by PHCC, the p-h-c industry is a natural grassroots powerhouse.
ur nation’s history is filled with many great
this primary reason: the p-h-c industry is a natural grassroots
examples of industry and government working
powerhouse and harnessing its strength and unleashing its
together to resolve society’s problems and issues –
firepower is only a matter of structuring its ability to optimize
while seeking opportunities for the “greater good.”
its potential. PHCC will continue to engage lawmakers and
Our nation’s history is also filled with as many great examples of
regulators to educate them on the p-h-c industry, and when
legislatures and regulatory bodies trampling industry’s interests
needed, to use our structured grassroots network system so
in pursuit of what is believed to be for the “greater good.”
that we can mobilize our collective voice in order to advance our
Are lawmakers’ and governments’ intentions well intended? Perhaps… Is the manner, at times, in which they seek their objectives shortsighted? No doubt… The truth is that full engagement from both sides – industry
interests. Issue update at a glance, as of mid-October… • 3% Withholding Repeal – House Ways & Means has reported out PHCC-supported legislation to repeal the 3% withholding on government construction contracts. Starting Jan. 1, 2013,
and government (local, state, federal) alike, is the only way to
all federal and state contracts for goods and services will be
pursue for the “greater good.”
subject to a 3 percent income tax withholding on each and
With all of this in mind, PHCC is providing expanded
every payment over $10,000 to a contractor. The requirement
grassroots services to its members. This includes monitoring
also applies to large local governments that make $100
and tracking industry issues on a daily basis, and if need
million or more in annual expenditures for goods and
be, mobilizing members to advance a piece of legislation or
services. The full House is expected to vote on the bill soon.
regulation. Or, mobilizing members to stop (kill) a piece of
PHCC’s grassroots focus is to overwhelmingly pass the
legislation or regulation in order to avoid a possible destructive
House version of the repeal, then move on to its grassroots
situation. This active participation is enhanced by constant
efforts in the Senate. PHCC National continues to work with
industry education for lawmakers and government. Education in
the Government Withholding Relief Coalition on repeal of
all its forms is the key to grassroots, and successful grassroots
the 3% withholding. PHCC President Keith Bienvenu sent
campaigns can only occur if industry has fully educated
a letter recently to House Ways & Means Committee Chair
lawmakers and regulators.
Dave Camp requesting the committee move 3% withholding
It also crucial to continuously engage legislators and
repeal legislation to the House floor. “Congress should be
government on the local, state, and national levels. Rest
pursuing policies that encourage; not hamper, job creation
assured that, on your behalf, PHCC is always educating,
in the private sector,” Bienvenu stated. Unless repealed by
always building relationships, always seeking opportunities
Jan. 1, 2013, the 3% withholding tax will go into effect. The
for engagement, and always studying pressure points in the
tax will mandate that federal, state, and local governments
legislative and regulatory processes in order to protect and seek
withhold 3% from payments for goods and services, not
opportunities for members.
only causing an unprecedented paperwork burden for the
PHCC sees much potential in these grassroots efforts for [ 10 ]
Maryland PHCC Contractor | Winter 2011
government and companies who provide goods or services