Congressman Wally Herger (R-CA) today issued the following statement after President Obama signed into law H.R. 674, legislation he authored to repeal the 3% withholding tax, which would require 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 this tax could wipe out their already slim profit margins and make it harder to create jobs. Repealing the tax is part of the House Republican Plan for American's Job Creators and was strongly supported by a broad coalition of business groups and organizations representing state and local governments that faced substantial costs to implement the tax:
"Today's signing of 3% withholding repeal into law demonstrates that both parties can work together to encourage job creation. Both the repeal of that harmful mandate and the passage of veterans employment provisions included in this legislation were areas of common ground. I appreciate the support for a bill I authored, but this is only one step in getting our nation back to work. I encourage the Senate to promptly consider the many other bipartisan jobs bills that have already passed the House."