Congressman Leonard Lance (NJ-07) today voted to repeal an onerous federal tax provision that would have straddled many New Jersey local governments, small businesses and contractors with unnecessary costs and administrative burdens. The repeal measure passed the U.S. House 405 to 16 and now moves to the U.S. Senate for consideration.
Specifically, Lance voted for H.R. 674, a measure to repeal the law requiring federal, state and many local governments to withhold 3 percent of what they owe contractors for goods and services until those contractors have fully paid their federal taxes. The requirement, originally scheduled to take effect last January, has been twice delayed and is now due for implementation in January 2013.
"I am pleased that today the House of Representatives, in a bipartisan manner, voted to repeal a three percent withholding tax that would have been an undue burden on our job creators and our economy. President Obama agrees that we must reduce the financial and administrative costs on our Nation's small businesses and today's legislation will relieve states and local governments, small businesses and contractors with unnecessary costs and administrative burdens."
Lance noted that repealing the 3 percent withholding requirement has strong bipartisan support -- it was included in both the House Republican jobs plan and the President's jobs bill. The measure is also supported by a broad coalition of business groups, including the U.S. Chamber of Commerce, National Association of Manufacturers (NAM) and National Federation of Independent Businesses (NFIB).
The Seventh District lawmaker said there is a renewed effort to enact bills that have strong, bipartisan support.
"Today's action is another example of how Congress and President can work together in a bipartisan fashion to deliver more economic certainty to our Nation's job-creating small businesses," said Lance. "In order to expand, grow and create jobs, the Nation's small businesses need further economic certainty and bipartisan cooperation from Washington."