McCarthy Statement on House Repeal of the Three Percent Withholding Tax
Washington D.C. – House Majority Whip Kevin McCarthy (CA-22) released the following statement regarding House passage of the 3% Withholding Tax Repeal:
“Following the President’s most recent address to Congress, House Republicans expressed our willingness to find areas of common agreement. Speaker Boehner, Leader Cantor, Chairman Hensarling and I stated that we would look at our jobs plan and the President’s plan to find areas of commonality so we could bring legislation to the floor that would gain bipartisan support. Repealing what the IRS calls ‘the three percent withholding rule’ was one area of agreement between House Republicans and the President.
“The three percent withholding rule is a lose-lose proposition that keeps much-needed capital tied up in bureaucratic red tape, instead of being used to expand businesses and hire new workers. For small businesses, nothing is as vital as their cash flow, and the cost of market entry for entrepreneurs is daunting already – adding unnecessary cost burdens on both defies commonsense. This money belongs to our job creators, not to Washington. Today’s bipartisan vote is a step in the right direction, and I hope Senate Democrats will pass this bill as soon as possible.”