Congress got one step closer Thursday toward repealing a 3 percent withholding tax on all government contracts as the Senate voted 95-0 to approve the measure.
However, businesses will have to wait until at least next week to see the requirement taken off the books. The Senate also included an amendment that offers businesses tax credits for hiring unemployed veterans.
The House had approved H.R.674 two weeks ago by a 405-16 vote, but the chamber will have to vote again on the new version of the bill. National Journal reports the House is expected to approve the amended version and President Obama could receive the bill at his desk next week.
“The effect of the repeal of the withholding requirement would be to avoid a decrease in cash flow to these contractors, which would allow them to retain these funds
and use them to create jobs and pay suppliers,” the statement says.
Â Previous withholding repeal coverage:
- Senate Votes to Discuss Contractor Withhold Repeal Law
- House Approves Repeal of Contractor Withholding Tax
- Push to Repeal Contractor Withholding Tax Paused
- House to Take Up Contractor Withholding Repeal Next Week
- House Panel Approves Repeal of Contractor Withholding Tax
- Cantor: House to Consider Repeal of Contractor Withholding Tax