Congressman Fred Upton (R- St. Joseph), an original co-sponsor, voted in favor of legislation (H.R. 674) to permanently repeal the 3 percent withholding requirement on certain payments made to contractors doing business with federal, state, and local governments.   The bipartisan bill passed the House of Representatives 405 – 16.

“As a co-sponsor of H.R. 674, I believe that repealing the 3 percent withholding rule is a commonsense, bipartisan step to promote economic growth and job creation for southwest Michigan,” stated Upton.  “If not repealed, this rule would impose new burdens on already cash-strapped employers, impede cash flow, and undermine job creation.”

The 3 percent withholding rule was originally scheduled to take effect on January 1, 2011, but because of strong concerns raised by employers and government entities alike about the potentially significant burdens it could create, the rule’s effective date was delayed until January 1, 2013.  A full repeal is necessary for the security of job creators.