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House Repeals Contractor Withholding Tax House Repeals Contractor Withholding Tax

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House Repeals Contractor Withholding Tax

In a rare show of bipartisanship, an effort to repeal a 3 percent withholding tax on government contractors passed the House by a vote of 422 to 0 just days after the bill was passed with similar bipartisan support in the Senate.

The most recent version of the legislation also included a Senate amendment to provide tax credits and hiring incentives to assist unemployed veterans. The legislation was lauded by lawmakers from both parties and the White House as an undisputed opportunity to create jobs.


The widely unpopular withholding tax was originally approved in 2006, but lawmakers repeatedly delayed its implementation. It was set to take effect in 2013.

Last week the White House issued a statement supporting the legislation and the amendment. President Obama is expected to sign it as early as this week.

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