October 27, 2011 3:00 PM CDT

House repeals 3% withholding law

Legislation moves to Senate

By Tim O’Toole

The U.S. House of Representatives voted 405-16 today to repeal the 3% withholding law on all federal, state and local government contracts.

“Supporting the repeal of the 3 percent withholding law is a demonstration that Washington can work together,” Michigan Republican Dave Camp said before the vote. “We can free up valuable resources businesses can use for hiring.”

The legislation will now move to the Democrat controlled Senate, where lawmakers will debate how to recover an estimated $11 billion the government would lose by repealing the law. President Barack Obama supports repealing the withholding law.

In a separate vote, the House passed H.R. 2576 by a margin of 262-157. The measure will alter the 2010 health care law to include the nontaxable portion of Social Security benefits in calculating eligibility for government health-care programs, removing some individuals from Medicaid and subsidized coverage. These savings would help offset the loss from 3% withholding repeal.

The MCAA has opposed the withholding and has urged Members of Congress to repeal this law. MCAA members are encouraged to write their Senators today and ask them to support the repeal of the 3% withholding law.

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About the Author

Tim O’Toole is the Director of Marketing, Education, and Information Technology for the MCAA. He has a Masters in Business Administration from Webster University and has worked in the masonry industry since 2003.