The House bill eliminating the 3% withholding rule, making it easier for government contractors to cheat on their taxes, a small part of the American Jobs Act and supported by the President, passed today, on a near-unanimous vote of 405-16. The bill was paid for through a separate measure, which changes the calculation of modified adjusted gross income by including Social Security benefits in the calculation, for the purposes of determining eligibility for programs like Medicaid and SCHIP. This fix of a “glitch” that would allow some middle-income early retirees to get nearly free Medicaid coverage (we can’t have that!), passed by a smaller amount, on a vote of 262 to 157. 27 Democrats joined 235 Republicans in supporting the bill.
While the withholding requirement passed several years ago, it had yet to go into effect.
If it had been allowed to, it would mean “huge accounting burdens on governments and potentially harmful cash-flow disruptions for suppliers, contractors and subcontractors,” said Representative Eric Cantor, Republican of Virginia, the majority leader, on the House floor. “Those are dollars that could otherwise be used to grow a business or hire more workers.”
The withholding bill, the first among so-called jobs bills that Republicans and Democrats have been able to agree upon, would repeal a requirement for federal, state and local government agencies to withhold 3 percent of certain payments to companies doing business with the government and to deposit the money with the Internal Revenue Service.
How facilitating tax cheating counts as a jobs measure is beyond me, but whatever the case, the bill and its offset go to the Senate. A 3% withholding bill got 57 votes in the Senate last week, with a different offset that just reduces expenditures across the board. That was before the Administration came out in favor of the bills, however. So surely, something incorporating 3% withholding is likely to pass Congress.
The CBO estimates that federal revenues would be reduced $11 billion over 10 years by this measure. That’s a little more than 2% of the cost of the American Jobs Act. And it has almost nothing to do with jobs. But it’s destined to become law.




9 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
So on the CBS news tonight I hear that Congress’s approval rating is now at 9%. How could that be?
I am so comforted we get something that Cantor likes….Just wow./s
And the demand for Vaseline just goes up an up.
And the average Russian, pre-1917, thought the Duma was useless…………?
Can the US govern itself? Should the UN intervene? Should the US intervene on itself via a UN mandate? Should the US become a Canadian Protectorate?
Hey! That means a million of us just lost our Medicaid and have to buy non healthcare insurance through the exchanges. Nice./s
I guess I’ll have the bronze plan, your honor, or is it cheaper just to pay 2% to the IRS and pay for my healthcare out of pocket?/s
Congress’s approval rating is actually now a “negative” percentage number./s Minus 9%.
The Duma would do a better job of governing this country. Not the current Duma, the one from 1917. Sure, they’re Russian and most of them have been dead for upwards of 80 years, but still…
We need a citizens arrest of all of the people in the House who voted for this bill. These people are not doing a good job and do not deserve to be given one more chance. This madness has to stop, the DOJ has to be purged, the WH needs to be vacated, what is the OWS doing? They need to speak up with one voice, either pass THE RETURN TO PRUDENT BANKING ACT to reinstate the Glass Steagall Act before the monetarist system goes belly up with us going down with it, and have Congress start uttering credit under the terms of the US Constitution spelt out in Article 1 Section 8.
Then proceed with NAWAPA and get NASA back up again as the science driver we desperately need and start the restoration of our country. We can find someone to stand in as president while sanity takes over and the terms of the US Constitution carries us into a new era of freedom and prosperity.
We cannot expect to get anywhere if we leave the slightest remnant of this Congress or Adminstration’s liberty to wreck the republicity of our sovreign nation any longer. They have brought disgrace upon themselves and have brought We the People to our knees, while we are down here, we need to pray that God will hear our cry and while we are repenting of our wicked ways, that he will heal our land. We won’t get anything accomplished until we take stock of our transgression of the will of God and put him back on the throne of our hearts. Worshipping any other form of idol will not cut the mustard.
The offset used by the House is the same one Max Baucus promised to use to save 600,000 transportation jobs.
Barry should send Mamma Obama to an old folks home (or a tent city) and she could do a little dance, wag her finger at everyone about fresh vegetables, and explain how nice it is to have health care. And the tell all the old croaks and croakettes how damn lucky they are to have someone like her hubby looking out for ‘em. You know, healthcare-wise, Social Security-wise, tax-wise. You know, LIE.