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Public Statements

Franks Signs onto Bill to Repeal 3% Federal Income Tax Withholding Policy


Location: Washington, DC

Congressman Trent Franks (AZ-02) signed onto H.R. 674, a bipartisan bill that amends the IRS code to repeal the 3% withholding requirement on payments due to vendors providing services to federal, state, and local governmental entities.

"As it stands, a three percent federal tax withholding policy that will create cash flow problems for private companies as well as instigate higher costs for federal, state, and local governments will go into effect January 1, 2013. I fear that the negative consequences of the policy are far reaching.

"When our nation's unemployment rate is already 9.2 percent, I cannot stand by and watch struggling Arizona companies go out of business because of a policy that was slipped into Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 without any debate.

"Washington's job is to stoke America's economy back to life, not to play in its ashes."

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