Jackson Citizen Patriot: Walberg votes to repeal measure that would allow government to withhold 3 percent of payments to vendors
By: Holly Klaft
U.S. Rep. Tim Walberg joined his colleagues in Congress in an effort to block a measure that would allow federal, state and local governments to withhold 3 percent of payments to contractors for goods and services.
Opponents of the withholding rule, which is scheduled to take effect in 2013, said it would put financial stress on businesses and hinder job creation. The U.S. House voted 405-16 in favor of repealing itlast week.
“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,” Walberg, R-Tipton, said in a written statement.
The withholding rule was originally passed in an effort to help prevent tax evasion among government contractors.
The House and Senate have disagreed on how to offset the cost of repealing the measure.