Washington, D.C. – Representative Reid Ribble (WI-8), a cosponsor of H.R. 674, voted to pass the bipartisan legislation that would amend the Internal Revenue Code to repeal the three percent withholding requirement for vendors of government contracts. The bill passed the House 405-16.

“This requirement would place undue harm on many small businesses already facing extreme setbacks due to a tough economy,” said Ribble. “Small businesses, such as construction companies and farmers, operate on tight margins and any slight variation in cash flows can have a significant impact on day-to-day operations. Many job creators, who would have been affected by this regulation, will now be able to keep more of their hard earned money which can be used to expand operations, pay suppliers and hire new workers. The repeal of this requirement addresses one more obstacle that is blocking the path to economic recovery and represents a major win for the small business community.

“It’s encouraging to see members of both parties come together in support of this legislation that will reduce tax and regulatory burdens on businesses. Now that the White House is on board, I hope that the Senate will take swift action so businesses can begin hiring and growing our economy.” 

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