On Thursday, the House voted 405 – 16 to repeal the 3 percent withholding requirement imposed on employers when they receive payments from the government for services they provided. This bill will bolster job creation by removing a costly, unfair burden on America’s jobs creators.
Rep. Cathy McMorris Rodgers (R-WA) joined all Republicans and a large number of Democrats in voting for the repeal.
“In this economy, job creators don’t have the luxury of not being paid on time,” McMorris Rodgers said.
““The withholding requirement wrongly assumes that job creators who do business with the government are somehow evading full taxation. Pre-taxing businesses 3 percent to prevent them from underpaying is like paying only 97 percent of a home repair bill ‘in case’ the repair man is overcharging,” she added.
The Hill adds:
By approving the measure, which most Republicans and Democrats support, the GOP bolstered its argument that while Republicans are passing legislation to help the economy, Obama and Democrats in the Senate have been unable to move jobs legislation. They also provided a good counter-argument to Obama, who has been criss-crossing the country slamming Republicans for obstructing his jobs bill.
All “no” votes were cast by Democrats.
Although the repeal was a small part of President Obama’s jobs package, the vote represents the first time Republicans in the House has approved a provision of Obama’s $447 billion jobs package.
“By passing another jobs bill, House Republicans are helping companies cope with this era of uncertainty,” House Majority Leader Eric Cantor (R-VA) said, according to The Hill. “This is another bipartisan and common sense solution to support the small businessmen and women of our economy so that they can support and begin to regenerate our ailing economy.”
Cantor went on to challenge the Senate:
“The president has traveled the country telling Americans ‘we can’t wait’ to pass some job bills. Well, we aren’t waiting. We continue to pass job bills. Perhaps it’s time for the president to deliver the ‘we can’t wait’ message to the other body in the Capitol,” he said.
McMorris Rodgers said the repeal brings fairness to the tax code while letting job creators keep more of their own money.
“Since the American people can’t choose to pay less than 100 percent of their bills, neither should the federal government. I’m proud to support this bill which will bring fairness to the tax code and let job creators keep more of their money to create more jobs,” she said.
The Hill reports:
The Congressional Budget Office said repealing the withholding rule would cost the government $11.2 billion over 10 years. Republicans estimate that changing healthcare eligibility requirements would save the government about $13 billion.
HR 674 now moves to the Senate. If passed, it will go into effect in 2012.
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