H.R. 674, Repealing The 3 Percent Withholding On Payments Made To Vendors By Government Entities
I came to this body as a small business owner, as someone who employs just under 100 people. For me, that's 100 families. I decided to run for Congress because it felt to me as if the Federal Government was making it harder and harder for…
I came to this body as a small business owner, as someone who employs just under 100 people. For me, that's 100 families. I decided to run for Congress because it felt to me as if the Federal Government was making it harder and harder for me to put the key in the door and to open up my business each and every day. Frankly, they should be doing quite the opposite. We here in this body should be making it easier for American businesses to grow their businesses--to be able to hire more people, to invest back in their businesses and to grow.
I am pleased to say that we have an opportunity this week to vote on a bipartisan piece of legislation to end some of the barriers that are preventing businesses from investing back in their businesses. We're going to have an opportunity to vote on H.R. 674, which would repeal a provision that would force government entities to withhold 3 percent from the vendors that they do business with.
Earlier this year, we took care of some legislation that was some overburdensome regulation on 1099s for small businesses. This was going to be paperwork that was going to, in essence, cost small businesses hundreds of thousands of dollars and, in some cases, millions of dollars just to comply, just to cross the T's and dot the I's. Not a single bit would be added to their bottom line or would be helping provide services to consumers.
There is no question that this bill would help small businesses. It would also help governments and municipalities that would be forced to withhold. This withholding requirement is particularly harmful to small businesses, to contractors; and it would undermine our efforts to spur job creation. This requirement needlessly ties up the cash flow of small businesses, and that's exactly what we don't need to do at this particular time.
This is a commonsense piece of legislation, and I am confident that we will be able to pass it. We've got over 269 cosponsors today. Mr. Speaker, the gentleman who was just up here is, in fact, the lead cosponsor, Mr. Blumenauer, along with my colleague Wally Herger from California. It enjoys broad bipartisan support. It's commonsense legislation.
We do not need to be taking dollars out of the economy at this point in time. It increases costs for goods and services. It increases the burdens on administrative requirements. It increases the costs for recordkeeping. This is another instance of unintended consequences of legislation and ones that, I think, we cannot afford.
We must focus on how we can help small businesses across this land. We in this body need to create an environment where small businesses can have more certainty because, when I talk to businesses all across the 10th District of Illinois, the one thing I hear over and over and over again is that the uncertainty out there is preventing people from investing in their businesses, from moving forward. This would be yet one more burden. We don't need to do that.
So I'm pleased to see that Members on both sides of the aisle are coming together to try to solve some of these issues. It's certainly what the American public is looking for us to do, to be able to find some common ground, to move forward, so that we can eliminate some of these barriers. The number one issue we face, without exception, is jobs and the economy, so it seemed like common sense to me that we try to enable small business to be able to have the tools necessary to forecast, invest in their businesses and to grow.
With 29 million small businesses in our Nation, if we can create an environment where half of those businesses can create a single job, think about where we'd be then. We've got 9.1 percent unemployment in our country. In Illinois it's at 10, and certain areas even in the 10th District we've got unemployment of 20 to 22 percent.
We've just been recognized as the number one manufacturing district in the country. We've lost 750,000 manufacturing jobs in Illinois. We have to step up and allow small business to be able to invest back in their businesses and to grow.
I'm delighted to see that we were able to come together 2 weeks ago on trade legislation to be able to help those manufacturers, to help farmers, to be able to increase exports and grow jobs right here in America. Those are exactly the efforts that we need to do.
So I want to encourage my colleagues on both sides of the aisle to come together on H.R. 674 to help small businesses move forward and get America back to work.