Senate Repeals 3 Percent Withholding Rule
November 16, 2011
On Thursday, November 10, 2011, the Senate voted (95-0) to repeal the 3 percent withholding rule. If signed into law, the legislation would repeal the current requirement that governments at all levels withhold 3 percent of payments to contractors. The legislation would also scale back last year’s healthcare law to disqualify some middle-income Americans from Medicaid.
The bill also included a Democratic amendment that would create tax incentives for companies to hire veterans. This was also cleared by the Senate in a 94-1 vote, and is based on the Veterans Opportunity to Work Act (H.R. 2433). This act would provide monthly payments for retraining assistance to returning veterans and also includes the tax credit proposed by President Obama in his jobs legislation for companies that hire veterans.
The bill must first pass a second vote by the House of Representatives before it reaches President Obama.