The repeal of the 3% withholding tax passed this evening in the U.S. House of Representatives by a vote of 422 to 0.

With this House vote, we have overcome the final hurdle in Congress. The bill now goes to the White House for the President’s signature!

The Chamber's Executive Vice President for Government Affairs, Bruce Josten applauded the effort:

By repealing the 3% tax withholding provision that was scheduled to take effect in 2013, Congress took an important step in lifting a cloud of uncertainty hanging over the business community. With passage of this legislation, many small businesses that operate on tight margins will feel more comfortable making decisions to hire and invest in their companies knowing that the government won’t be allowed to hold 3% of their revenues. We look forward to the president signing this important legislation into law expeditiously so this provision will be fully repealed once and for all.

The Chamber appreciates the leadership of Senator Scott Brown (R-MA) and Congressmen Wally Herger (R-CA) and Earl Blumenauer (D-OR), who spearheaded the legislative effort, as well as Speaker Boehner and Leader Cantor who added this effort to the Fall ‘to do’ list in the House and Leader McConnell who pushed the issue at a critical point in the Senate.

We also want to thank everyone who signed our petition and contacted their member of Congress. Your work and resolve helped get this done!