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Public Statements

Congressman Pascrell Heralds Repeal Withholding on Government Vendors

Press Release

Location: Washington, DC

U.S. Rep. Bill Pascrell, Jr. today applauded the House's passage of legislation he co-sponsored that repeals the 3 percent withholding tax on government vendors, and called on the U.S. Senate to pass the repeal as soon as possible.

"I am pleased that the U.S. House of Representatives recently passed the repeal of the 3 percent withholding rule. This removes a looming burden that has weighed on government contractors, particularly small businesses, " said Pascrell, a Member of the Committee on Ways and Means and the House Budget Committee. "It just makes sense to free businesses of this obligation so they can apply the money to their payrolls. I hope the United States Senate will follow suit immediately so that President Obama can enact this repeal."

The Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) included a provision that all federal agencies withhold 3 percent of the federal payments to contractors providing services to the federal government. The enforcement this provision has been delayed by Congress and the Obama Administration. It is scheduled to take effect until January 1, 2013.

The legislation passed by the U.S. House of Representatives on October 27, 2011.

"This legislation is only a very small part of a jobs plan that must be enacted to help reduce unemployment and wage stagnation. The House Majority has already denied us a vote on known job-creating measures, including the Infrastructure Bank and funding for our first responders and teachers," said Pascrell. "Congress must do more to help foster immediate economic growth and build the foundation for a sustainable economy for the future generations."

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