House Votes To Scrap Contractor Withholding Rule

Law360, New York (October 27, 2011, 3:41 PM EDT) -- The U.S. House of Representatives voted overwhelmingly Thursday to repeal a rule requiring the federal government to automatically withhold 3 percent from payments to contractors, amid clamor that the measure could harm small businesses.

Lawmakers from both sides of the aisle voted 405-16 to pass H.R. 674, which would nix a mandate created to prevent payments to government contractors who owed taxes to the Internal Revenue Service. The nay votes came from Democrats unswayed by President Barack Obama's endorsement of the bill.

The rule requires federal,...
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