Washington, D.C. - Today, U.S. Representative Tim Walberg voted in favor of H.R. 674, legislation that will repeal the 3% withholding rule that is scheduled to take effect in 2013.  This rule would require federal, state and local governments to withhold 3% of the payments to vendors for purchased goods and services. Many businesses, including family farms, construction companies and trucking firms, operate on slim profit margins, and this rule would impose a substantial new burden that undermines their ability to create jobs.  Additionally, repealing this rule will save federal, states and local governments from having to comply with a new unfunded administrative mandate.   H.R. 674 overwhelmingly passed the full House of Representatives by a bipartisan vote of 405-16 and is now before the U.S. Senate for further consideration.

“Governments should pay their bills to American job providers.  I voted today to repeal this 3% withholding rule, because many American businesses providing goods and services to governments would face immediate cash flow problems if governments no longer had to pay their full bill.  We need to encourage economic growth and private sector job creation to help Michigan families, instead of placing another burden on businesses already struggling in this tough economy,” said Congressman Tim Walberg.