WASHINGTON, DC— House Small Business Committee Chairman Sam Graves (R-MO) issued the following statement on House passage of H.R. 674, legislation to repeal the 3% withholding requirement for contracting businesses:

Chairman Graves said, “As the Chairman of the Small Business Committee, I consistently hear about burdensome taxes and regulations that stifle small firms. This withholding tax is a perfect example of a burden that will impose significant financial hardships on our job creators. In fact, the policy is such a bad idea that since its enactment in 2006, Congress has delayed its implementation three times. But deferments create uncertainty, which stunts economic growth. That’s why the full repeal of this tax is needed, once and for all. I encourage the Senate to do the right thing and act quickly to pass this bill that will provide more certainty for the thousands of businesses who contract with federal, state and local governments.”

The Small Business Subcommittee on Contracting and Workforce held a hearing on the 3% withholding requirement on May 26, 2011. Chairman Mulvaney also led two press conferences calling for repeal of the tax, on September 14th and on May 26th.

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