FOR IMMEDIATE RELEASE: October 27^st, 2011

Paulsen Praises Passage of Bill Repealing 3% Withholding Tax

Onerous Provision Bad for Hospitals & Job Creators

Washington, D.C.– Representative Erik Paulsen (MN-03) released the following statement after the passage of H.R. 674, a bill to repeal the 3% withholding rate for government contractors. In 2006, Congress created a rule which required the government to withhold 3% on certain payments made to contractors doing work with federal, state and local governments in hopes that it would increase compliance. The rule was originally slated to go into effect on January 1, 2011, but concerns about the requirement have caused that date to be postponed to January 1, 2013. 

“This is another area in which Republicans and Democrats are working together to improve the economy, as even President Obama has singled out this provision as ‘burdensome’ to our nation’s job creators,” said Rep. Paulsen. “I’m pleased that this bill has passed as it would hinder a wide array of industries, including hospitals, companies providing school lunches and contractors working to improve our infrastructure.”

Click  HERE to watch Rep. Paulsen speak out against the 3% withholding tax on the House floor.

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation currently serves on the House Ways and Means Committee, and is co-chair of the Congressional U.S.- Korea Free Trade Working Group and co-chair of the House Medical Technology Caucus.

For more information on Rep. Paulsen’s work in Congress, please visit www.paulsen.house.gov.

###