Final Vote by Congress Repeals 3% Withholding Tax

The House of Representatives voted on Wednesday, November 16, 2011, to approve the Senate version of the repeal of 2006 withholding tax legislation.  

3% Withholding Would Have Been Required:  The law would have required all federal, state, and local agencies with expenditures of $100 million or more to withhold 3% of every payment over $10,000 to contractors, consultants, and vendors and send the money to the IRS for payment of income taxes.

Overwhelming Support in Congress:  The vote in the House was 422-0.  The vote in the Senate on November 10, 2011 was 95-0.

President to Sign Law:  The measure now heads to President Obama's desk for his expected signature.

Business and Government Both Pleased:  The final votes in Congress are a welcome relief to businesses and public agencies who have lobbied for years to repeal the law before its effective date of January 2013.

Mike Purdy's Public Contracting Blog 

© 2011 by Michael E. Purdy Associates, LLC 

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