Skip to content

Camp, Herger, Black Statements on H.R. 674 to Repeal the 3 Percent Withholding Provision on Government Contractors

November 16, 2011

Today, the House passed legislation authored by Ways and Means Health Subcommittee Chairman Wally Herger (R-CA) to repeal the 3 percent withholding law on certain payments made to vendors by government entities.  The bill also included a provision authored by Ways and Means member Rep. Diane Black (R-TN) that modifies the income definition used to determine eligibility for certain health programs in the Democrats’ health care law.  This modification more closely aligns the definition of income used for certain health programs with other federal means-tested programs.  Finally, the legislation included provisions targeted at increasing job opportunities for America’s veterans.  Ways and Means Chairman Dave Camp (R-MI) along with Herger and Black released the following statements upon final passage:

Chairman Camp: “Congress demonstrated that when we work together, we can find bipartisan solutions to laws and regulations that stifle job creation.  The permanent repeal of the 3 percent withholding law gives employers greater certainty that they will have resources to hire and invest in getting America back to work.  This deficit reducing legislation also aligns the income definition for certain programs in the Democrats’ health care law with other federal means-tested programs to ensure that taxpayer dollars are targeted only to those low-income families in need of assistance.  

“Finally, the Senate’s addition of the veterans-related provisions can increase opportunities for those who have served our nation and are seeking to join our workforce.  I look forward to seeing the President sign this bipartisan bill into law.”

Health Subcommittee Chairman Wall Herger: “The overwhelming bipartisan support in both chambers for repealing 3% withholding demonstrates that Congress can agree on common sense jobs legislation.  When small business owners are evaluating whether their investments will allow them to make a living, it matters if a new tax like this is going to cut off their cash flow in just over a year.  Repealing this detrimental mandate is an important step in making it easier for small businesses to create jobs.  I also strongly support the provisions included in the final version of H.R. 674 that are designed to help unemployed veterans find a job.  I am encouraged that the President has endorsed the repeal of 3% withholding and the overall legislation, and I look forward to him signing it into law very soon.”

Rep. Diane Black: “I am proud that my legislation that closes a costly loophole in the health care law has been included as part of this bipartisan jobs package.  Not only are we creating more certainty for small businesses and passing job-creating Veterans tax credits, but we are protecting $13 billion in taxpayer dollars by ensuring Medicaid dollars go to those most in need.  If unchanged, the health care law would allow middle class Americans—those making up to 400% of the poverty level—to receive federally subsidized health benefits.  My bill, now a part of this jobs package, prevents these improper payments and ensures that this important legislation is not only deficit neutral, but even gives money back to the Treasury.”