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Public Statements

Supporting Local Businesses: Repeal of 3% Withholding

Statement

By:
Date:
Location: Washington, DC

Yesterday, Congress repealed the tax law requiring federal, state, and local government agencies to withhold three percent of payments to contracting businesses providing goods and services. This law, passed in 2006 by President Bush and Republicans in Congress, only burdens our local businesses, especially in an underperforming economy. Estimates even project that the tax would actually cost more to implement than it would raise in new revenue. Fortunately, this law has never gone into effect, as Democrats have fought it for years and the House was successful in voting to repeal it this week.

Right now, our contractors and small businesses are strapped for cash and doing everything they can to keep their doors open. This law would have burdened businesses by restricting cash flow and causing administrative headaches. Eliminating this barrier will allow our businesses to better use their assets to grow and hire, which is exactly what our economy needs right now.

Small businesses are the engine of our economy and deserve our support and resources to get through this tough economic time. I will continue to do everything in my power to create an environment for job growth and business success in western Wisconsin.


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