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Herger, Republican Leadership Promote Bipartisan 3%Withholding Repeal

Press Conference

Location: Washington, DC

Congressman Wally Herger (R-CA) joined House Speaker John Boehner, Majority Leader Eric Cantor, and other members of the House Republican leadership in a press conference today supporting H.R. 674, legislation he authored to repeal the 3% withholding provision and has been advocating for several years. The provision requires government agencies at all levels to withhold 3% of their payments to businesses for goods and services. There has been broadly expressed concern among small businesses that the provision could wipe out their already slim profit margins. Ending 3% withholding is a part of the House Republican Plan for America's Job Creators, was included in the President's jobs bill, and has been supported by a broad coalition of business groups, including the Chamber of Commerce, National Association of Manufacturers, and National Federation of Independent Businesses. The President has also expressed support for this bill, and it is currently scheduled for a vote on Thursday. Congressman Herger issued the following statement in anticipation of Thursday's vote:

"I applaud House leadership for bringing the legislation I have sponsored to repeal the 3% percent withholding provision to the House floor this week. This bill has 269 bipartisan cosponsors, and I am hopeful it will pass the House on a strong, bipartisan vote. As a small businessman, I understand that heavy-handed regulations like this provision cause significant hardship for businesses already operating on slim profit margins. Full repeal of 3% withholding will help create a favorable environment for job creation and is necessary to provide certainty to our small businesses that this harmful provision will be eliminated once and for all."

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