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Ros-Lehtinen Co-Sponsored Bill Approved By The House That Aims To Help Small Businesses & Medicare Providers

Press Release

Location: Washington, DC

Cong. Ileana Ros-Lehtinen is pleased that the House has passed legislation she has long supported to eliminate the burdensome 3% withholding tax on all government contractors including many small businesses and Medicare providers. The bill was approved by an overwhelming bipartisan majority.

This legislation will prevent a 3% withholding penalty on US government payments to all federal, state and local contractors that were scheduled to go into effect January 1, 2013. Many small businesses were concerned that such a requirement would have wiped out their profit margins and seriously disrupted their cash flow during a serious economic downturn.

Medicare providers also supported the bill because it will prevent disruption of health care to their patients. Such a penalty could have caused substantial costs to doctors and other health care providers which would have harmed their ability to provide vital services.

It will also help universities and colleges, as well as state and local governments who are federal contractors. Florida organizations supporting the bill include the Florida League of Cities and Miami-Dade County.
Said Ros-Lehtinen, "I am pleased that the House approved this bill with strong support from both parties. This is a great solution that frees small businesses to grow and hire more employees. It will benefit the South Florida community including health care providers and local governments."

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