Congressman Yoder (KS-3) issued the following statement after the House of Representatives passed H.R. 674, which he cosponsored. This bill repeals the 3% withholding tax on local government contracts.
"Today the House took another step toward creating a pro-small business environment to create jobs. Passage of this bill will protect small businesses and local governments from this onerous provision. Regulations, such as the 3 % withholding provision, carry with them considerable burdens as well as significant costs on government entities and the business community as a whole. It is critically important that we ensure our government agencies exercise fiscal responsibility, not only with tax payer dollars, but with how their rules can have a financial impact on the American public. The passage of H.R. 674 takes us a giant step closer to exercising proper Congressional oversight on onerous regulations that will have a crippling impact of our economic recovery and job creation."
· H.R. 674 passed the House by a vote of 405-16.
· The 3 % requirement was originally part of a larger tax bill known as the Tax Increase Prevention and Reconciliation Act of 2005 and was intended to take effect on January 1, 2011. In 2009, the enactment date was delayed for one year till 2012. Earlier this year the IRS issued regulations providing for an additional one-year delay till 2013.
· Permanent repeal of the 3% withholding tax will increase cash flow for job creators, and give businesses assurance that it is safe to expand, invest, and hire new workers.
· Passage of H.R. 674 was an important step in reducing the number of "unfunded mandates" that are imposed upon businesses and state and local governments. Earlier this year Congressman Yoder introduced the following bills to address this issue:
o H.R. 2964, the Unfunded Mandates Accountability Act of 2011, which will require agencies to select the "least costly, least burdensome, and or most cost-effective" regulatory approach when proposing rules that have an economic impact on the public and private sector. Additionally, H.R. 2964 provides for total agency compliance and sets up a judicial review process.
o H.Res.402, the PAUSE ACT, which will postpone or "pause" implementation of all major rules and regulations that restrict economic growth for one calendar year.
http://yoder.house.gov/press-releases/house-repeals-onerous-tax-provision-in-bipartisan-manner/
