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On Thursday, Congressman Latta voted in support of H.R. 674, a bill to repeal the 3 percent contractors’ withholding tax rule, which is set to go into effect in January 2013. Unless the bill is passed by the Senate and signed by the President, all federal and state contracts for goods and services will be subject to a 3 percent withholding tax on every payment over $10,000 to a contractor. The rule also applies to large local governments that make $100 million or more in annual expenditures for goods and services.

“This broad tax law is problematic for everyone," said Rep. Latta. "It imposes another set of burdensome taxes on businesses large and small, and also on governments and agencies across the country.  In this struggling economy, businesses and governments are cash-strapped and are not able to pay these taxes. If we don’t repeal this provision, the cost will be passed to customers through higher prices.”

On October 20, 2011 the White House issued a statement backing the repeal, saying it would "avoid a decrease in cash flow to these contractors, which would allow them to retain these funds and use them to create jobs and pay suppliers. This would complement the administration's other efforts to help small businesses."