WASHINGTON — The Senate Thursday voted 95 to 0 to repeal a tax law provision that would require federal, state, and local governments to withhold 3% of certain payments made to private contractors beginning in 2013.
Sen. Olympia Snow, R-Maine, voted "present" without taking a position on the bill, which was an amended version of the one the House passed Oct. 27. Provisions were added to the bill to provide tax credits for companies that hire unemployed veterans.
The amended bill will go back to the House for approval before being sent to President Obama for his signature. The administration supports the repeal and Obama has said he will sign the measure.
State and local groups pushed hard for the bill — H.R. 674, Repeal of the Three Percent Withholding on Government Vendors — warning the requirement would be costly and burdensome for the federal government, as well as for them.
Rep. Wally Herger, R-Calif., had introduced the bill in February and it gained ground as a bipartisan effort to create jobs.