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Public Statements

Griffin: 3% Withholding Rule Repeal Reduces Uncertainty and Burden on Job Creators

Press Release

Location: Washington, DC

Congressman Tim Griffin (AR-02) issued the following statement after House passage of H.R. 674, which repeals the imposition of a three percent withholding requirement on certain payments made to contractors doing business with federal, state and local governments:

"One theme that emerged from the Second District Jobs Conference is that job creators are facing great uncertainty as a result of increased regulation and a complex tax structure. I supported this bill because repeal of this three percent withholding rule gives job creators the certainty that this additional burden will never be imposed. Now they can invest in their businesses and start hiring more workers."

In 2006, Congress enacted a three percent withholding requirement on certain payments made to contractors who do business with federal, state, and local governments. This rule was originally scheduled to take effect at the beginning of 2011, but was delayed until January 1, 2013, because of the significant burdens it would have created on employers. H.R. 674 would repeal this rule and ease the burden on employers contracted by federal, state and local governments. Griffin joined with 268 other Members in cosponsoring the bill, which is also supported by over 180 businesses and associations.

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