Berthold Quoted in Article on 3% Procurement Tax

Contractors will soon have to change the way they do business due to a 3 percent tax attached to government contracts.

The tax, passed by Congress in May 2006, will require federal, state and local governments to withhold 3 percent of payments to contractors beginning in 2012.

The requirement, which ensures the federal government receives income taxes, has business groups as well as local and state officials in the Baltimore-Washington Corridor fighting for a repeal.

“If businesses have to take 3 percent off the top, they’re not going to be able to do business or pay their bills,” said Gloria Berthold, president of TargetGov, an Elkridge-based business development firm specializing in federal, state and local government contracting opportunities. “My crystal ball says it’s going to put a lot of people out of business.”

Click here to read the full article on Corridor, Inc.