Mr. MARCHANT. Mr. Speaker, to my constituents in Texas, two things lay at the heart of this bill. The first is that the repeal of the 3 percent withholding requirement removes unreasonable burdens on contractors doing business with federal, state, and local governments; the second is that it creates a more stable economic environment to conduct business, create jobs and get America moving in the right direction.
The legislation before us repeals a requirement that may have been well-meaning but was ultimately misconceived. Whatever the original purposes of three percent requirement, the outcome would be disastrous.
Much-needed capital would be kept out of the hands of cash-strapped businesses across the country. And local and state governments--facing historic budget pressures--would be saddled with even more additional administrative and compliance costs on basic goods and services.
At a time when business investment is essential to revitalizing our economy, repealing the 3 percent withholding rule is the kind of federal action that aids economic growth and makes possible an increase in private consumption and demand. H.R. 674 is a thoughtful, commonsense, bipartisan bill that strengthens our economy, and I urge my colleagues to support this legislation.