Rep. John Lewis Comments on Repeal of 3% Withholding Provision

Today the U.S. House of Representatives voted to amend the Internal Revenue Code of 1986 to repeal a 3 percent withholding related to certain payments made to vendors by government agencies first implemented under a Republican majority in 2006.  Implementation of the law was delayed once Democrats came into authority because they disagreed with the charges.  H.R. 674 repeals this withholding.  Rep. John Lewis made these comments on the bill and also criticized the cynical, partisan approach Republicans have taken to pay for the repeal:

“Today I am glad to support HR 674, a bill to repeal the 3% withholding requirement on payments made to government contractors.  This bill is good for small businesses, and it is good for state and local governments.

"HR 674 provides relief to small businesses in Atlanta and across the State of Georgia, many of whom are already struggling to make it in these tough economic times.  If this 3% withholding requirement were in effect it would make it even harder for small businesses to make payroll.  We have seen building and construction grind to a halt in Georgia, and withholding this money would further deprive them of the money necessary to invest in and complete other projects that serve to beautify our communities. " 

"I have also heard from local counties who support HR 674.  The 3% withholding requirement is an unnecessary burden that costs them money at a time when they already face significant strains on their budgets.  They would much rather use their resources to serve the people and provide quality services to their constituents."

"I object, however, to HR 2576, the bill that Republicans have chosen to use to pay for HR 674.  While HR 674 is a bipartisan bill, Republicans have decided to use this opportunity to pass the partisan HR 2576 in another attempt to undo the successes of health care reform.  HR 2576 would cause an estimated 500,000 people to lose health care coverage altogether , and many more would face increased health care costs.  The $13 billion burden of HR 2576 would fall entirely on the shoulders of America's senior citizens, the disabled, and their families.  To pay for this bill we could stop spending millions every hour on wars in Iraq, Afghanistan and Libya.  We could simply require the richest Americans to pay their fair share, but once again the leadership of this House wants to balance the budget on the backs of the least among us.  It is a disgrace.   

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Brenda Jones
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