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Public Statements

Rep. Quayle Statement on the 3-Percent Withholding Repeal


Location: Washington, DC

Congressman Ben Quayle (R-AZ) released the following statement Thursday after the House passed HR 674, a bill that repeals the 3-percent withholding mandate. Unless repealed, beginning on January 1, 2013, federal, state and local governments will withhold 3 percent from payments for goods and services to vendors. The 3-percent mandate will be extremely burdensome for thousands of American companies that operate on slim profit margins.

"The 3-percent withholding tax is one of the many sources of uncertainty plaguing American businesses. The prospect of billions in new taxes on top of the thousands of new rules and regulations coming out of the Obama Administration disrupts cash flow and causes many of our companies to think twice before hiring new workers. This bill removes a needless impediment to American investment and innovation.

"As the Wall Street Journal editorial page points out today, the United States ranks 13th in the "ease of doing business' category, according to a report conducted by the World Bank. In 2007, we ranked third. As the report makes clear, American companies are held back by a regulatory environment that allows our economic competitors to catch up. Repealing the 3-percent withholding tax is a small step, but we have a long way to go to restore confidence in the marketplace."

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