PRESS RELEASE

NBFAA Seeks Repeal of Federal Withholding Mandate
Association Announces Support of House Bill H.R. 1023

Irving, Texas, March 13, 2007 – The National Burglar & Fire Alarm Association (NBFAA) today called for enactment of legislation which would repeal Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005, a Federal withholding mandate set to become effective in 2011. Repeal of this withholding tax provision is a legislative priority for NBFAA.

House Bill H.R. 1023, introduced recently by Rep. Kendrick Meek (D-Fla.) and Rep. Wally Herger (R-Calif.), seeks to repeal this mandate which calls for the Federal government, as well as state and local governments with annual spending of more than $100 million, to withhold 3 percent from payments to their vendors for goods and services and send it to the IRS. The Section 511 mandate also will affect Medicare payments, farm aid, and certain grants.

“This tax penalizes small businesses across the country. For every contract our members have with the government, instead of receiving payment in full for their services, the government has decided just to keep a portion for itself,” said NBFAA Government Relations Committee chairman Michael Meridith, president, Security Equipment, Inc., Omaha, Neb.

“Section 511 was added to the final House-Senate conference version of last year’s tax legislation without any consultation with state and local government officials or organizations representing government contractors. Members of Congress were not aware of the provision or what it would mean to their districts. It simply should be repealed,” added Meridith.

A member of the Government Withholding Relief Coalition, NBFAA was among more than 50 organizations that sent a letter recently to Representatives Meek and Herger applauding their leadership and pledging to seek enactment of H.R. 1023.

About NBFAA

NBFAA, a non-profit 501(c) 6 trade association, is the nation's oldest and largest organization dedicated to representing, promoting, and supporting the electronic life safety, security, and systems industry. Member companies specialize in a wide spectrum of services to commercial and residential consumers, including security and fire alarms, video surveillance, access control and monitoring. In cooperation with a federation of state associations, NBFAA provides government advocacy and delivers timely information, professional development tools, products and services that members use to grow and prosper their businesses. The NBFAA may be reached at (888) 447-1689 or on the Web at www.alarm.org.

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National Burglar & Fire Alarm Association (NBFAA)
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