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AAFA applauds repeal of withholding requirement
Nov '11
American Apparel & Footwear Association (AAFA) President and CEO Kevin M. Burke applauded President Barack Obama for repealing the law requiring federal, state, and local governments to withhold three percent of money due to government contractors until contractors have fully paid their taxes.

“Action by President Obama is a welcome relief for workers in the U.S. textile, apparel and footwear industry who outfit U.S. servicemen and women around the world.

“Now that this legislation has been signed, Congress should act quickly on legislation that would further level the playing field for U.S. textile, apparel, and footwear workers by passing the Department of Defense Textile and Apparel Procurement Fairness Act. This legislation would update and rebalance the unfair preferences enjoyed by federally-incarcerated inmates that have resulted in continued lay-offs, job losses, and, in some cases, the closure of whole 'Made in America' factories.”

Without the repeal of the withholding requirement, businesses that sell products to the government would have been required to pay their tax obligations earlier than necessary. Many small and medium-sized businesses would have been required to meet these obligations before meeting their payroll obligations which would have jeopardized U.S. jobs.

To further support these important U.S. jobs, the Department of Defense (DOD) Textile and Apparel Procurement Fairness Act (H.R. 2312), legislation that would level the playing field for government contractors who outfit American servicemen and women by limiting the government contracting preference currently enjoyed by federally-incarcerated inmates. The legislation was introduced in the U.S. House of Representatives by Representative Walter Jones (R-NC) and Representative Larry Kissell (D-NC) on June 23, 2011.

In 2010, the U.S. military spent more than $2 billion on uniforms, camouflage, training gear, and combat footwear for U.S. servicemen and women. Nearly $140 million of that business went to convicted felons in 24 federal prisons around the country under the auspices of Federal Prison Industries (FPI), a government-run program that puts inmates to work while in prison.

The American Apparel & Footwear Association (AAFA) is the national trade association representing apparel, footwear and other sewn products companies, and their suppliers, which compete in the global market. AAFA's mission is to promote and enhance its members' competitiveness, productivity and profitability in the global market by minimizing regulatory, commercial, political, and trade restraints.

American Apparel & Footwear Association (AAFA)

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