Today, U.S. Rep. Rick Larsen (WA-02) voted to repeal the 3% withholding tax on transactions between the government and private sector businesses (H.R. 674).

Set to take effect on January 1, 2013, all bills paid by the federal or state government for goods and services would be subject to a 3 percent income tax withholding. Larsen, a cosponsor of H.R. 674, voted to repeal the 3% withholding tax on these transactions.

“Congress should not impose additional burdens on small businesses that are trying to grow and create jobs,” said Larsen. “I voted to repeal this tax burden so that local small businesses can use their capital to grow their business and create new jobs in our local communities.”

“As a member of the committee that oversees our roads, bridges and highways, I have heard from the local private sector contractors who do much of that construction and repair work.  These businesses have been struggling to survive during the recession, and a 3% withholding tax is often more than their profit margin. I want to do what I can to help these businesses succeed. That is why I voted to repeal this burdensome tax,” Larsen continued.