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Public Statements

Griffin: Repeal of 3% Withholding Rule Will Encourage Job Creation

Press Release

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Date:
Location: Washington, DC

Congressman Tim Griffin (AR-02) issued the following statement after final passage of H.R. 674, which repeals the imposition of a three percent withholding requirement on certain payments made to contractors doing business with federal, state and local governments:

"The repeal of the three percent withholding rule will encourage job creation because it gives job creators the certainty that this additional burden will never be imposed. It gives them the flexibility to grow their businesses and hire additional employees. It received large bipartisan support in both the House and Senate, and I urge the President to sign it immediately."

In 2006, Congress enacted a three percent withholding requirement on certain payments made to contractors who do business with federal, state and local governments. This rule was originally scheduled to take effect at the beginning of 2011 but was delayed until January 1, 2013 because of the significant burdens it would have created on employers. H.R. 674 would repeal this rule and ease the burden on employers contracted by federal, state and local governments. It originally passed the House in October and an amended version was passed by the Senate last week. The bill will now be sent to the President for him to sign into law.


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