Congressman Doug Lamborn (CO-05) today voted to repeal a measure that would unfairly penalize businesses that provide goods and services to the federal government. H.R. 674 would ensure that the federal government does not withhold three percent of its payment on its businesses contracts.

Today’s action is another example of common ground between the House and President Obama on his jobs bill. President Obama, to his credit, sought to delay implementing this new rule in his jobs bill that is stalled in the Democrat-controlled Senate.

“We know that the American people are looking for solutions from Washington. Where President Obama has common sense ideas that will help grow our economy, my Republican colleagues and I are willing to work with him. Today’s action in the House seeks to protect businesses that contract with the federal government from paying a hidden tax of three percent. In this struggling economy, job creators can better use this money to help create jobs.” – Doug Lamborn (CO-05)

“This three percent withholding would create a situation in these uncertain economic times where I would have to go out and try to borrow capital so I could loan it to the federal government for free until the next year when I might get the money back. That's money that I could be using to hire more people.

"The whole situation would create an administrative nightmare for small business and it would create unneeded and unwanted conflict between small businesses and the I.R.S.”– Harold Jackson, CEO Buffalo Supply, small family-owned business, Lafayette, CO

The repeal bill now goes to the Senate.

For more on House-passed bills to grow the economy and create jobs, go to jobs.gop.gov.

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