By US Daily Review Staff.
The House today overwhelmingly passed legislation that will repeal what is being described by the GOP as “the job-killing” 3 percent withholding mandate on local companies doing business with state, local and federal governments. The bill tracks an earlier version of the law co-sponsored by U.S. Congressman Kevin Brady (R-Texas).
The measure also simplifies the process for companies to hire unemployed and disabled veterans. This legislation passed the Senate last week with overwhelming bipartisan support.
“Congress is looking for ways to help American job creators survive the Obama economy and hopefully to start adding local jobs. Today’s strong bipartisan vote is evidence that this Congress can work together to reduce the uncertainty facing our local businesses and is capable of enacting legislation that will free up valuable resources for hiring,” Rep. Brady stated.
The 3 percent withholding rule would require all levels of government to withhold 3 percent of payments owed to their contractors throughout the United States. The withholding, if allowed to occur, would prevent businesses from hiring new employees and in some cases could require that businesses take out loans to cover the losses due to complying with the law.
“In addition to providing job creators with the necessary cash flow to pay their wages, this bill will also provide assistance to our unemployed veterans. This legislation will aide our veterans in their transition to the civilian workforce by providing them with the ability to build upon their skills learned while serving our country,” concluded Brady.
The provisions in this legislation which apply to veterans include a tax incentive for businesses that hire veterans and specialized job training for unemployed veterans that will assist in job placement efforts.
The Obama administration has argued that the Congress, with Republicans in control of the House and the Democrats in the Senate, have been unable to work together and they have been holding the process of government “hostage.” According to Republicans, the passage of this bill by both Houses provide an excellent opportunity for the President to show that the current Congress can get things done. This particular bill will help the President in his single biggest challenge — unemployment levels not seen since the Great Depression.