Wally Herger

Mr. HERGER

Mr. HERGER. Madam Speaker, on that I demand the yeas and nays.

Mr. HERGER. I continue to reserve the balance of my time.

Mr. HERGER. Madam Speaker, I have no further requests for time, and I reserve the balance of my time.

Mr. HERGER. Madam Speaker, I yield myself such time as I may consume. Today we have an opportunity to encourage job creation by repealing a tax that's looming over small businesses and also to improve economic opportunities for the men and women who have risked their lives and limbs to serve our country in the Armed Forces. I urge a strong bipartisan vote for this legislation, and I yield back the balance of my time. Chamber of Commerce of the United States of America, Washington, DC, November 14, 2011. To the Members of the United States House of Representatives: The U.S. Chamber of Commerce, the world's largest business federation representing the interests of more than three million members and organizations of every size, sector, and region, strongly urges you to support H.R. 674 as amended, which would fully repeal the burdensome 3% Withholding Tax mandate enacted in Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109- 222). H.R. 674 was approved with overwhelming bipartisan support in the U.S. Senate last week. The Senate passed bill adds language to make a technical clarification regarding the existing federal levy program in order to conform to congressional intent and directly address tax delinquency. H.R. 674 originally passed in the U.S. House of Representatives by a vote of 405 to 16 and is supported by the Administration. Given the substantial bipartisan, bicameral support for repealing the 3% withholding tax mandate, the Chamber urges the House to expeditiously approve H.R. 674 as amended to give greater certainty to those impacted. Unless repealed before it takes effect on January 1, 2013, the 3% Withholding Tax will have a dramatic, negative impact on millions of honest taxpaying businesses as well as state and local governments. Under this provision, the Internal Revenue Service (IRS) was given new broad sweeping authority to hold hostage 3% of nearly every transaction between the public and private sector--giving the federal government an interest free loan on the backs of many honest taxpayers. This mandate is also anti-stimulus in the sense that it removes money from local economies and sends it to the IRS. Additionally, the profit margin for many businesses is often less than 3%, meaning that the withholding tax will create significant cash flow problems for day-to-day operations as well as draining capital that could be used for job creation and business expansion. The 3% Withholding Tax will also drive opportunities away from small businesses as governments look to consolidate their purchasing with larger companies to make it less onerous to comply with the mandate. During these difficult economic times, Congress should be pursuing policies that encourage, not hamper, business growth and job creation in the private sector. The U.S. Chamber of Commerce strongly supports H.R. 674 as amended, to fully repeal the 3% Withholding Tax, and urges you to approve this important legislation and send it to the President for his signature. Sincerely, R. Bruce Josten.

Mr. HERGER. Madam Speaker, I yield 2 minutes to the gentleman from South Carolina (Mr. Mulvaney), the chairman of the Small Business Subcommittee on Contracting and Workforce.

Mr. HERGER. Madam Speaker, I yield 5 minutes to the gentleman from Florida (Mr. Miller), the chairman of the Veterans' Affairs Committee.

Mr. HERGER. I yield the gentlewoman 1 additional minute.

Mr. HERGER. Madam Speaker, I yield 3 minutes to the gentlewoman from Tennessee (Mrs. Black), who has been instrumental in working on this legislation and coming up with savings that we can do to see that it is paid for.

Mr. HERGER. Madam Speaker, I yield myself such time as I may consume. I rise in strong support of H.R. 674. Members of this House are well aware of why the 3 percent withholding tax must be repealed. It threatens to destroy the cash flow of thousands of small businesses that sell goods and services to the government agencies and impose additional costs on cash-strapped State and local governments. Today I want to talk about the big picture and why this is so important for job creation. Americans are hurting. Nearly 14 million are unable to find work, and millions more are stuck in part-time jobs, even though they would like to work more. We are now well into the fourth year of this downturn, and many Americans are increasingly discouraged about the long-term future of our economy. America's job creators are hurting too. Today, thousands of small business owners will sit down, look over their books, and try to discern what the future holds. They are uncertain about whether there will be sufficient demand for their goods and services. They are uncertain about how Europe's fiscal crisis will affect our economy and whether we will do what is needed to address our own debt crisis before it's too late. And they're uncertain about the direction of government policy, whether Washington will continue to hand down new taxes and regulations that stifle economic growth. The 3 percent withholding tax is an example of the kind of government policies that discourage job creation. When small business owners are evaluating whether their investments will allow them to make a living, it matters if a new tax is going to cut off their cash flow in just over a year. Repealing this tax is one important step. It sends a message to America's job creators that jobs are our number one priority and that Congress is committed to undoing policies that stand in the way of restoring prosperity. I reserve the balance of my time.

Mr. HERGER. Madam Speaker, I yield 1 minute to the gentleman from Indiana (Mr. Stutzman), the chairman of the Veterans' Affairs Subcommittee on Economic Opportunity.

Mr. HERGER

Mr. HERGER. Mr. Speaker, this House has sent numerous jobs bills to the Senate in an effort to get our Nation back to work. I want to call particular attention to the 3 percent withholding repeal legislation I authored, which passed the House with overwhelming bipartisan support just last week. This legislation will help many small businesses create more jobs, and the Senate should act on it without further delay. The House-passed bill would eliminate a burden on job creators by repealing a tax that requires government agencies to withhold 3 percent of all payments for goods and services. As someone who comes from a small business background, I can attest that although this provision does not take effect until the end of next year, it hurts job creation now because businesses look several years ahead when they are deciding how to invest. It is not surprising that over 150 businesses, health care, education, and local government groups support passage of this legislation. In addition, over 400 Members of the House of Representatives have voted for it, and President Obama has endorsed it, as well as Representative Black's associated cost-saving measure. Instead of waiting for more stimulus bills that face bipartisan opposition, the Senate should work with the House to pass jobs bills like this one that is supported by both parties. There are already 15 jobs bills passed by the House that are being delayed unnecessarily, and 3 percent withholding repeal joins those forgotten 15 in waiting in our U.S. Senate and by our Senate colleagues. The House version of this repeal continues to have strong bipartisan support. The Senate has heard from job creators just as we have about the need for this legislation, and they should work with us in passing commonsense jobs bills, starting with the repeal of the 3 percent withholding tax.

Mr. HERGER

Mr. HERGER. I applaud my good friend from Tennessee for her leadership. This should not be a difficult question. Even the President supports this. I believe the Medicaid expansion and premium subsidies in last year's health care overall are wasteful and should be repealed, but even for those who support these policies, there's no reason to ignore an entire category of income. Under current law, a person with $30,000 in Social Security benefits and $20,000 in other income would get a much larger health insurance subsidy than a person who earns $50,000 in wages. That makes no sense, and it's a disincentive to work. Let's treat everyone fairly and vote for this bill.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I advise the gentleman from Michigan that I am prepared to close.

Mr. HERGER. Mr. Speaker, I yield 2 minutes to the gentleman from Minnesota (Mr. Paulsen), a distinguished member of the Ways and Means Committee.

Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume. I want to thank my good friend from Oregon (Mr. Blumenauer) for his support as the lead cosponsor on the other side of the aisle. I would like to take a moment to read a few of the comments that the Ways and Means Committee received from businesses and organizations across the country demonstrating why repealing the 3 percent withholding tax is critical to laying a stable foundation for job creation. Buffalo Supply, Incorporated, in Boulder, Colorado, writes, ``We are a 28-year-old small business that sells high-value medical equipment at a low margin, with a very significant part of our sales going to the Federal, State, and local governments. The 3 percent withholding tax will exceed our company's tax liability, which will destroy cash flow and ultimately hinder our ability to grow the business and add new employees.'' Ian Frost, principal and founder of EEE Consulting in Virginia, says, ``If enacted, the rule would mean the withholding of approximately $130,000 of revenue, using our projected 2011 revenue. This 3 percent withholding would essentially be a loan to the government for the year until our taxes are filed. Worse still, it might require our company to secure a loan to help us cover operating expenses at a time when cash in the bank is limited. The withholding could limit our ability to make payroll each month and limit our use of profits to give bonuses to our employees, expand our business, and hire new employees. A $130,000 withholding each year would deplete our cash reserves by about 30 percent.'' The University of Illinois notes, ``This will add expenses at a time when our university, like many others around the country, is facing reduced State support. We would have no choice but to pass these expenses on to our students, many of whom are also struggling to make ends meet.'' The American Medical Association states, ``In repealing the 3 percent withholding provision altogether, H.R. 674 will help Medicare beneficiaries maintain access to care, while assisting government agencies, physicians, and other health care providers avoid substantial implementation costs that will outweigh the benefits.'' And I'd like to add that, at a time when many of us are concerned about fixing the SGR that threatens massive cuts to physicians participating in Medicare and a loss of access to physician services for many seniors, the last thing we want to do is add yet another potential cut to physicians' payments. Again, these are just a few of the dozens--or hundreds--of letters and testimonials the committee received from businesses across the country. We need to pass H.R. 674 and repeal this harmful tax today. I reserve the balance of my time.

Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume. I rise in strong support of H.R. 674, the 3% Withholding Repeal and Job Creation Act. The American people have repeatedly called on Congress to work together in a bipartisan way to encourage job creation. That's exactly what we're doing here today. H.R. 674 repeals a tax that requires government agencies at all levels--Federal, State, and local--to withhold 3 percent of all payments for goods and services beginning at the end of next year. This tax will affect everyone, from manufacturers to road builders to physicians who treat seniors on Medicare. Many of these businesses operate on margins of less than 3 percent, meaning that this provision will harm their cash flow and effectively force them to give the Federal Government a no-interest loan. Even though it doesn't go into effect for another year, the 3 percent withholding tax is holding back job creation right now. Coming from a small business background, I can attest that businesses look several years ahead when they're deciding how to invest. This week the Associated General Contractors of America released a survey finding that nearly half of all construction firms will be forced to hire fewer workers if the 3 percent withholding tax takes effect. As one AGC member put it, ``The way the economy is now, we are very lucky to make 3 percent profit. This could put us out of business, along with our 300-plus employees.'' Now is the time to eliminate the barriers that are standing in the way of jobs for American workers. H.R. 674 has the support of businesses, State and local governments, and 269 bipartisan cosponsors in the House of Representatives, as well as the Obama administration. Mr. Speaker, I would like to enter into the Record a letter from the Government Holding Relief Coalition, signed by more than 150 businesses, health care, education, and local government groups supporting passage of this legislation. With that, I reserve the balance of my time. Government Withholding Relief Coalition, October 26, 2011. To the Members of the U.S. House of Representatives: The Government Withholding Relief Coalition and its member organizations strongly urge you to vote for H.R. 674, a bipartisan bill to repeal the burdensome 3% Withholding Tax mandate enacted in Section 511 of the Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222), when it is considered on the House floor later this week. Unless repealed before it takes effect on January 1, 2013, the 3% Withholding Tax will have a dramatic, negative impact on millions of honest taxpaying businesses as well as state and local governments, health care providers, farmers and colleges and universities. For many businesses the profit margin for projects they complete is often less than 3% meaning that the withholding tax will create significant cash flow problems for day-to-day operations as well as draining capital that could be used for job creation and business expansion. This mandate is also anti-stimulus in the sense that it removes money from local economies and sends it to the IRS. The mandate is already proving costly and will increase exponentially as the implementation deadline moves closer. If this mandate is not repealed, it will cost companies and governments at all levels substantial amounts of money just to prepare to comply with this unnecessary and unfortunate tax provision. These exorbitant expenditures will be at the expense of hiring new employees, expanding businesses, and providing government services at a time that neither the public nor private sector can handle such unnecessary costs. In addition, we strongly support the view that those receiving payments from the government should meet their federal, state and local tax obligations. However, imposing an onerous 3% Withholding Tax on transactions between government and honest taxpaying businesses is not the answer. The Government Withholding Relief Coalition, which represents all sectors of the economy, believes it is imperative that the 3% Withholding Tax be repealed as soon as possible to limit the damaging impacts to our economy. We appreciate the bicameral, bipartisan support of efforts to repeal it and strongly encourage you to vote for H.R. 674. Sincerely, Government Withholding Relief Coalition: Aeronautical Repair Station Association; Aerospace Industries Association; Air Conditioning Contractors of America; Air Transport Association; Airports Council International-North America; America's Health Insurance Plans; American Ambulance Association; American Bankers Association; American Bus Association; American Clinical Laboratory Association; American Concrete Pressure Pipe Association; American Congress on Surveying and Mapping; American Council of Engineering Companies; American Dental Association; American Farm Bureau Federation; American Gas Association; American Heath Care Association; American Institute of Architects; American Institute of Certified Public Accountants; American Logistics Association. American Medical Association; American Moving and Storage Association; American Nursery and Landscape Association; American Road & Transportation Builders Association; American Society of Civil Engineers; American Society of Landscape Architects; American Subcontractors Association; American Supply Association; American Traffic Safety Services Association; American Trucking Associations; Armed Forces Marketing Council; Associated Builders and Contractors; Associated Equipment Distributors; Associated General Contractors of America; Association of Management Consulting Firms; Association of National Account Executives; Association of School Business Officials International; Baltimore Washington Corridor Chamber; Biotechnology Industry Association; Business and Institutional Furniture Manufacturers Association. CTIA-The Wireless AssociationTM; California Association of Public Purchasing Officers; Coalition for Government Procurement; Colorado Motor Carriers Association; Computing Technology Industry Association; Construction CPAs/ Consultants Association (CICPAC); Construction Contractors Association; Construction Employers' Association of California; Construction Financial Management Association; Construction Industry Round Table; Construction Management Association of America; Design Professionals Coalition; Edison Electric Institute; Electronic Security Association; Engineering & Utility Contractors Association; Federation of American Hospitals; Financial Executives International; Financial Services Institute; Finishing Contractors Association; Gold Coast Hispanic Chamber of Commerce. Government Finance Officers Association; Hawaii Transportation Association; Heating, Airconditioning & Refrigeration Distributors International; IPC--Association Connecting Electronics Industries; Independent Electrical Contractors, Inc; International City/County Management Association; International Council of Employers of Bricklayers and Allied Craftworkers; International Foodservice Distributors Association; International Municipal Lawyers Association; Large Public Power Council; Management Association for Private Photogrammetric Surveyors; Mason Contractors Association of America; Mechanical Contractors Association of America; Medical Group Management Association; Messenger Courier Association of the Americas; Miami Dade County; Mississippi Trucking Association; Modular Building Institute; Motor Transport Association of Connecticut; Munitions Industrial Base Task Force. National Asphalt Pavement Association; National Association for Self-Employed; National Association of College & University Business Officers; National Association of Counties; National Association of Credit Management; National Association of Educational Procurement; National Association of Energy Services Companies; National Association of Government Contractors; National Association of Manufacturers; National Association of Minority Contractors; National Association of State Auditors, Comptrollers and Treasurers; National Association of State Chief Information Officers; National Association of State Procurement Officials; National Association of Surety Bond Producers; National Association of Water Companies; National Association of Wholesaler-Distributors; National Beer Wholesalers Association; National Corn Growers Association; National Council for Public Procurement and Contracting; National Defense Industrial Association. National Electrical Contractors Association; National Electrical Manufacturers Association; National Emergency Equipment Dealers Association; National Federation of Independent Business; National Institute of Governmental Purchasing; National Italian-American Business Association; National League of Cities; National Mining Association; National Office Products Alliance; National Precast Concrete Association; National Propane Gas Association; National Office Products Alliance; National Railroad Construction & Maintenance Association; National Ready Mixed Concrete Association; National Roofing Contractors Association; National School Transportation Association; National Small Business Association; National Society of Professional Engineers; National Society of Professional Surveyors; National Utility Contractors Association. National Wooden Pallet and Container Association; New Jersey Chamber of Commerce; North-American Association of Uniform Manufacturers & Distributors; North Coast Builders Exchange; Office Furniture Dealers Alliance; Oregon Trucking Association; Owner Operator Independent Drivers Association; Petroleum Marketers Association of America; Plumbing-Heating- Cooling Contractors--National Association; Printing Industries of America; Professional Services Council; Regional Legislative Alliance of Ventura and Santa Barbara Counties; Retail Energy Supply Association; Santa Rosa Chamber of Commerce; Security Industry Association; Service Disabled Veteran Owned Small Business Council; Sheet Metal and Air Conditioning Contractors National Association, Inc.; Shipbuilders Council of America; Small Business & Entrepreneurship Council. Small Business Legislative Council; South Carolina Trucking Association TechAmerica; Textile Rental Services Association of America; The Association of Union Constructors; The Distilled Spirits Council of the U.S.; The Financial Services Roundtable; U.S. Chamber of Commerce; U.S. Conference of Mayors; United States Telecom Association; Veterans Business Institute; Veterans Entrepreneurship Task Force; Water and Wastewater Equipment Manufacturers Association; Women Construction Owners & Executives; Women Impacting Public Policy.

Mr. HERGER. Mr. Speaker, I yield myself such time as I may consume. I would like to reference the Statement of Administration Policy on this bill. In this letter from the President, just to quote from it, ``The Administration supports passage of H.R. 674, which would repeal a 3 percent withholding on certain payments made to private contractors by Federal, State, and local government entities.'' ``The effect of the repeal of the withholding requirement would be to avoid a decrease in cash flow to these contractors, which would allow them to retain these funds and use them to create jobs and pay suppliers.'' Mr. Speaker, jobs are the number one priority of the American people, and jobs should be the number one priority of this Congress. Many initiatives that are billed as ``creating jobs'' are controversial. This is not. We're repealing a tax that hurts small businesses and that will cost the government more to implement than it collects. This is a win-win-win for businesses, workers, local public services, and taxpayers. I urge all Members to vote to repeal the 3 percent withholding tax and create new jobs now. With that, I yield back the balance of my time. Executive Office of the President, Office of Management and Budget, Washington, DC, October 25, 2011. Statement of Administration Policy H.R. 674--Repeal of the Three Percent Withholding on Government Vendors (Rep. Herger, R-CA, and 269 cosponsors) The Administration supports passage of H.R. 674, which would repeal a three percent withholding on certain payments made to private contractors by Federal, State, and local government entities. The repeal of the withholding requirement in H.R. 674 would reduce a burden on government contractors who otherwise comply with their tax obligations, particularly small businesses. As evidenced in the President's proposed American Jobs Act, released September 12, 2011, the Administration has supported alleviating this burden, which was originally enacted into law on May 17, 2006. The Administration also believes it is important to ensure that Federal contractors are compliant with tax laws and supports more targeted efforts that prevent persons with outstanding tax debts from receiving Federal contracts. The effect of the repeal of the withholding requirement would be to avoid a decrease in cash flow to these contractors, which would allow them to retain these funds and use them to create jobs and pay suppliers. This would complement the Administration's other efforts to help small businesses. Repeal of the withholding requirement would also reduce implementation costs borne by Federal and other governmental agencies. The Administration would be willing to work with the Congress to identify acceptable offsets for the budgetary costs associated with the repeal, which could include but are not limited to ones that are in the President's detailed blueprint outlined to the Congress on September 19, 2011.

Mr. HERGER

Mr. HERGER. Mr. Speaker, I rise in support of the APEC Business Travel Cards Act because it is another measure that helps create a favorable environment for job creation. As a co-chair of the APEC Caucus, I strongly believe that continued engagement in the Asia- Pacific region is critical to U.S. economic growth. The Asia-Pacific region is the most economically dynamic region in the world, home to two-thirds of the world's population and over half of all global trade. The legislation before us will help American businesses be more competitive in these growing markets. The easier our businesses can access these foreign markets, the more they can sell American goods and services abroad. The United States already recognizes the APEC Business Travel Card held by foreign nationals, giving them expedited travel processing. It is past time that we allow American businesses leaders around the country the same travel benefits that foreign APEC businesses travelers have been enjoying for years. This is a common sense bill that streamlines travel for American businesses that are trying to grow and reach customers in foreign markets. This legislation is long overdue and I urge my colleagues to support it.

Mr. HERGER

Mr. HERGER. Madam Speaker, the trade agreements before us represent a major opportunity for American small businesses and workers. By leveling the playing field for U.S. goods and services entering Colombia, Panama, and South Korea, these agreements will provide a significant boost to our economy and create an estimated 250,000 new jobs. They are commonsense, win-win agreements for the American people. Here's why. Removing tariffs and other barriers to U.S. exports means that our U.S. products become more competitive in foreign markets, which in turn generates more sales and more business for our farmers, ranchers, manufacturers, and service providers. Passing these agreements will mean more jobs, more economic growth, and more opportunities both on and off the farm for the men and women in my northern California congressional district and the rest of our Nation. Perhaps best of all, these trade agreements will provide real, permanent economic stimulus at no cost to the American taxpayers. They represent fundamentally sound economics--getting government-imposed barriers out of the way and letting American business and workers do what they do best. As the former ranking Republican on the Ways and Means Subcommittee on Trade, I have joined many others in urging support for these agreements. While I believe this week should have come a lot sooner, these are real job bills, and I urge my colleagues to support all three.

Mr. HERGER

Mr. HERGER. Mr. Chairman, I rise in support of H.R. 2250, which will protect American jobs from the EPA's unnecessary and economically destructive Boiler MACT regulations. At this time of high unemployment and economic hardship, the EPA wants to require the costly retrofitting of boilers at small businesses, energy plants, schools, and churches in the northern California congressional district I represent and across the Nation. This regulation is another example of the Obama administration standing in the way of job growth. The Department of Commerce estimates that the 276 pages of Federal regulations could eliminate as many as 60,000 U.S. jobs nationwide. The EPA's own fact sheet says that implementing these rules will cost more than $5 billion. In August of 2010, the Small Business Administration explicitly warned the EPA that these regulations were too extreme and would harm small businesses. Unfortunately, the EPA did not heed this warning. In addition, the boiler regulation will impose substantial and unnecessary costs for Americans to use biomass energy--an essential part of job growth in the northern California district I represent. Biomass is a clean and renewable energy source that could help increase our energy supplies and manage our overgrown and fire-prone forests while creating much needed jobs. I urge my colleagues to support this legislation, which will protect jobs and ensure that this costly regulation does not go into effect.

Mr. HERGER

Mr. HERGER. I thank the gentleman from Texas very much, and I want to thank the gentleman for the tremendous leadership that you've given us in the area of trade, trade which is so crucially important to our Nation, to our ability to create jobs, to our economic well-being here in our Nation. As Chairman Brady mentioned, I am very blessed to represent one of the richest agricultural areas in the world, an area in the northern Sacramento valley of California just north of Sacramento. In our area, we are the second-largest rice producing district in the Nation. We're also one of the top producers of specialty crops: peaches, walnuts, almonds, dried plums, and prunes are some of our major commodities. And the fact is that we cannot, both in California and in our Nation, nearly consume the amount of products that we grow. We are dependent on being able to export. But our challenge--and the example I'm giving with my district is really true in every area across our Nation; it's true in manufacturing and it's true in everything we do--is that as one of the top trading nations in the world historically, the United States, we are dependent on being able to trade. Ninety-five percent of the world's markets lie outside of the United States. Now, what are the challenges that we have, and why are these trade agreements, these three trade agreements with Panama, Colombia and South Korea, so very important to not only my area of California but to the entire Nation? The reason is that we have challenges in getting into other countries' markets. We have very little, very low barriers coming into our markets. Other countries can trade with us almost barrier-free, but that is not the case with our products going to other countries. Other countries--virtually all of them--are very protective. They have very high tariffs. So therefore what is taking place when we sit down with these nations and bargain and come up with these trade agreements is an opportunity of lowering their barriers so that the district in my area where we can be able to export to them rice, peaches, walnuts, almonds, dairy products, and, again, our manufacturing goods, without these high barriers and be able to get access to those markets. So it's very important that we do this. What happens when we don't move forward? Well, we can see it. I was in Panama just this last year. Panama now is doubling the size of the Panama Canal. They're going to need construction equipment. Now, where are they going to purchase this construction equipment? Well, they could be purchasing it from the United States. But guess what? Canada was successful in negotiating a trade agreement with Panama before we've had ours signed. Therefore, they have lower rates, lower barriers on getting their equipment into Panama. So Panama there has had a big advantage of buying from Canada, sales that would have come from the United States. We can use these same examples with Colombia, the same example with South Korea who has negotiated with the EU, a major trading competitor with us. Therefore, we lose out in jobs, and we lose out in this market share. It is really a lose/lose for the United States. I want to commend the President. We wish he would have sent these three agreements to us sooner. I'm grateful that he's sending them to us now. It's very important that we pass it. What we have seen is that the nonpartisan U.S. International Trade Commission has estimated that by signing these three trade agreements we can increase 250,000 new jobs to the United States--250,000 new jobs. That's without any stimulus, without any taxpayer money going into it. It is jobs for people who are unemployed today that can be employed, and it will increase at least $13 billion in trade. So I want to urge our Congress, I want to urge the House and I want to urge the Senate to vote for these, pass it, let's get going on these trades. Again, Mr. Chairman, thank you very much for your leadership.

Mr. HERGER

Mr. HERGER. Madam Speaker, the 3 percent withholding provision, which will come into effect if Congress does not act, essentially forces businesses that have contracts with the government to forgo 3 percent of their payments as a downpayment on their tax bill. This represents yet another burden on our Nation's small businesses and job creators, the lifeblood of our economy. As a small businessman, I know firsthand about the negative impact of burdensome taxes and cumbersome regulations. Many small businesses that contract with the government operate on very slim profit margins, so a 3 percent tax would create serious cash flow problems for them at a time when so many are struggling. Aside from that, this provision will actually cost the government money. Federal, State, and local governments are already facing unprecedented deficits, and yet agencies will have to create new collection systems and may face higher costs for goods and services if this is not repealed. The Department of Defense has said that for the DOD alone, the provision will cost $17 billion to implement. Madam Speaker, that is $7 billion more than the total revenue the tax is expected to raise. In another example of Washington math, the provision will force the government to spend more money and end up eliminating jobs and hurting small businesses. Congress can certainly do better. We must do better. Twenty million Americans are out of work, and our small businesses must have the certainty they need to create more jobs. We cannot punish law-abiding businesses because a few contractors do not pay their taxes. Instead, the government should stop awarding government contracts to businesses that do not pay. To that point, the OMB and the Treasury Department have announced several initiatives to prevent contracts from going to companies that are delinquent on their taxes. Madam Speaker, we're looking for something we can do right now to help job creation in America. Well, this is it. Repealing the 3 percent withholding provision will provide a significant benefit to small businesses just by getting Washington out of their way. If we don't repeal it, we will put small businesses, jobs across America, and our efforts at economic recovery at greater risk. It's time to get this harmful job-killing provision off the books forever.

Mr. HERGER

Mr. HERGER. Mr. Chair, on rollcall No. 703, I inadvertently voted ``no'' when I intended to vote ``yes.'' Stated against:

Mr. HERGER

Mr. HERGER. Mr. Speaker, on rollcall No. 699, I was unavoidably detained. Had I been present, I would have voted ``yes.''

Mr. HERGER

Mr. HERGER. Mr. Speaker, we must act now to enact critical spending reforms. While the White House has refused to offer a plan, the Budget Control Act would accomplish this goal. Will it solve all of our economic problems? No. But instead of discussing how much more Washington will spend, we're now talking about reducing our spending and how to live within our means, just like all Americans must do. For example, the Budget Control Act would cut nearly $1 trillion in spending over the next 10 years, establish firm spending caps, and require the Senate to vote on a balanced budget amendment. I urge the Senate and President Obama to stop playing politics and support this bill.