The U.S. House of Representatives yesterday voted 405-16 in favor of repealing Section 511 of Public Law No. 109-222, which mandates a requirement that federal, sate and local governments withhold 3 percent of their payments on contracts for goods and services.
On several occasions MAPPS has urged the IRS to eliminate the 3 percent withholding.
The bill will now wait for a vote in the Senate before a final approval from President Obama.
Unlike some more controversial bills that have been passed through the House, this bill has had support by both parties. President Obama had included a delay in the effective date of the withholding in his recently unveiled jobs package.