Tough talk on withholding
Few business groups can match the political muscle of the American Bankers Association, with 14,000 member banks and 80 million potential supporters in the form of depositors. Now the bankers and their allies are being accused of lobbying overkill, for practically burying Capitol Hill in mail.
At issue is a law that requires banks and other financial institutions, beginning July 1, to withhold 10% of interest and dividend payments for tax purposes. (The first $150 of interest income is exempt; the poor and the elderly get special treatment.) Unexpectedly passed last year as part of President Reagan's $98.3 billion...
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