Hensarling: “A tax bad enough to delay is a tax bad enough to repeal.”
WASHINGTON – House Republican Conference Chairman Jeb Hensarling (R-Texas) issued the following statement today regarding H.R. 674 to repeal the job-killing 3% withholding tax scheduled to go into effect on January 1, 2013.
“Repealing the 3 percent withholding tax will let job creators keep more capital to create more jobs. As part of the House Republican Plan for America’s Job Creators, this repeal bill will restore confidence in businesses and entrepreneurs that it’s safe to invest, expand, and hire more Americans. Senseless taxation like the 3% withholding tax only kills confidence and erases capital. Jobs can’t grow when cash flow slows.
“While House Republicans believe in enforcing lawful taxpayer compliance, the 3 percent withholding tax is the absolute wrong way to go about doing it. The tax automatically—and wrongly—assumes that job creators who provide goods and services to the federal government are somehow evading full taxation. Hitting them with an up-front pre-tax will end up punishing all tax-payers instead of penalizing just tax-evaders.
“In this struggling economy, job creators don’t have rainy day funds to pay for a needless ‘suspicion tax.’ The money soaked out of businesses through the 3 percent withholding tax would do little to boost revenue but do much to bring about higher prices for consumers, lower wages for workers, and lost jobs for the American people.
“Americans can’t choose to pay less than 100 percent of their bills; neither should the federal government. A tax bad enough to delay is a tax bad enough to repeal. The passage of this repeal bill marks a perfect opportunity for the president to work with House Republicans to put Americans back to work.”