Floor Statements

Mr. Chairman, I originally voiced strong concerns when this legislation was first introduced last year, arguing that it would negatively impact northern California's water supplies and undermine our senior water rights; but under Chairman Hastings' leadership, it has come a very, very long way.

We have amended the bill so it not only protects northern California water and power users I represent, but in many respects puts them in a materially better position. As such, I intend to strongly support it. It contains important reforms to the CVPIA, a law that has, like so many others, gone awry, including greater certainty for agriculture through longer-term contracts, improved financial accountability, and a cap on the amount ratepayers I represent must pay into the restoration fund.

Most importantly, a new title 4 contains an explicit Federal recognition of California water rights priority system and area of origin protections. Going forward, it will also ensure water users in our area are not harmed by efforts to address environmental and water- quality challenges in California. We have created an important baseline for any water legislation to ensure northern California's water needs will be met first.

There is broad support for these provisions, including from the Tehama Colusa Canal Authority, representing 17 water districts; the Northern California Water Association; eight absolute priority settlement contractors; the city of Redding; Redding Electric Utility; and the Family Water Alliance, a group representing Sacramento Valley landowners.

In short, the bill seeks to solve another tragic ESA-caused water shortage facing our family farmers in California. And it does so while fully protecting senior water rights holders in my district, and in many ways enhancing their positions.

I urge strong support for the bill.

Mr. Speaker, America's Blood Centers is North America's largest network of community-based, independent, non-profit blood centers. I congratulate ABC on its half-century anniversary and applaud its continued mission to help member blood centers serve their communities.

BloodSource is the blood center in Northern California. A regional, non-profit organization, BloodSource provides blood and services in ten counties within California's Second Congressional District and sixteen other counties in the state. In my district, BloodSource operates two major regional blood centers and one community donor center. Every day BloodSource conducts multiple blood donor drives to assure a safe and plentiful blood supply for the people who receive care in thirteen hospitals I represent.

I am proud to be a BloodSource blood donor and honored to represent 90,000 BloodSource blood donors. I have had the privilege of sponsoring BloodSource blood drives for several years. I applaud the efforts of BloodSource to make certain that every patient has the blood and blood components needed, wherever and whenever the need.

I join BloodSource in celebrating the 50th anniversary of ABC. Together with its members, ABC provides half of the American and a quarter of the Canadian blood supply to more than 150 million patients who receive care in 3,500 hospitals and healthcare facilities across North America. The work of ABC members impacts all of us.

Congratulations to America's Blood Centers. Because of their work, lives are being saved in cities and towns across the nation.

Madam Chair, the federal government's overreach into education is doing more harm than good for our schools and universities. The bill before us today, the Protecting Academic Freedom in Higher Education Act, would repeal some of the more heavy-handed regulations created by the Department of Education. I am concerned that states becoming actively involved in the accreditation process could adversely affect private universities in Northern California and throughout the U.S. by adding another layer of costly mandates and bureaucratic interference. I also do not believe the federal government should micromanage universities through actions such as defining the credit hour, which interferes with the academic authority of university leaders. I strongly support this legislation ending both of those harmful and unnecessary rules, and I hope the Senate will join us in eliminating these excessive regulations.

Mr. Speaker, I rise today to recognize the work and accomplishments of Robert Foy, as he prepares to retire this year as Chairman of the California Water Service Group's Board. The California Water Service Group (CWSG) provides water utility services to over two million people in five states, including the cities of Chico, Marysville and Willows, which are located in the Northern California congressional district I represent.

Mr. Foy is a fourth-generation Californian and was born in San Francisco. He attended San Jose University and served our nation in the U.S. Army. Following the Army he worked for Pacific Storage and Moving where he eventually took over as head. On January 1, 1996, he was named as Chairman of the CWSG where he worked to streamline the utility's operations and improve customer service. One project was the construction and consolidation of the CWSG's customer and operations service center in Chico, which I was

able to tour upon its completion in 2002. The utility's operations were previously spread among multiple facilities. The consolidation benefited the California Water Service Group's customers in Chico by allowing them to go to one central location for resolving their service issues.

Mr. Foy also served as Chairman of the Government Relations Committee for the National Association of Water Companies (NAWC) for four years. In the NAWC's Annual Report to Congress, the organization presents their comments on the numerous issues facing private water utilities across the country.

Mr. Foy continues to be an extraordinary individual who has made significant and lasting contributions to our community through his exemplary leadership and service as Chairman of the California Water Service Group's Board.

I am extremely grateful for Bob Foy's service to our nation and community-at-large. I am pleased to celebrate and honor the accomplishments of this impressive American as he retires this year.

Madam Chair, I rise in strong support of H.R. 1173, the Fiscal Responsibility and Retirement Security Act.

It's now clear that long before the Democrats' health care overhaul was passed, the Obama administration knew that the CLASS Act was a seriously flawed program that could not be implemented. For example, Medicare actuary Rick Foster said way back in June of 2009: ``Thirty- six years of actuarial experience lead me to believe that this program would collapse in short order and require significant Federal subsidies to continue.''

Yet these warnings went unheeded and the CLASS Act remained in the health care bill 9 months later because it created an illusion of budget savings, an illusion based entirely on the fact that it was designed to collect premiums for a full 5 years before it would have to start paying benefits. Yesterday the Congressional Budget Office estimated that the cost of Federal health care entitlement programs will more than double over the next decade.

Madam Chairman, for the sake of our Nation's future, we must get these costs under control. The CLASS Act is an unsustainable program that, if it ever begins operating, would inevitably need a major taxpayer bailout. By repealing it today, Congress can send a clear message that we are going to start finding solutions to rising health care costs instead of making the problem worse.

Mr. Speaker, taxpayers, small businesses, and health care providers need certainty and predictability to plan for the future. Unfortunately, the bill that's come back to us from the other Chamber makes our usual habit of only 1-year long extensions look responsible by comparison.

The Senate bill extends a number of key policies, including the patch preventing a steep cut to doctors' Medicare payments, for just 2 months.

Mr. Speaker, we've been down this road before. Last year, under the previous majority, Congress passed five separate extensions of Medicare physician payments, mostly for just a month or two. Several times these patches missed the deadline, meaning payment cuts took effect and then had to be reversed.

The failure to responsibly address the SGR created an unprecedented amount of chaos and confusion, both for doctors and the Medicare agency. House Republicans have been determined not to let this happen again. That's why we passed a fully paid-for 2-year fix.

The American people are tired of Congress wasting time on political stunts and waiting till the last minute to cobble together half measures.

Mr. Speaker, we still have 2 weeks before the end of the year to get this right, and there's no reason to think we'll do better in 2 months. I urge my colleagues to support the motion to go to conference so we can get a responsible solution.

Mr. Speaker, it's critically important that we act to prevent physicians' Medicare payments from being cut by 27.4 percent on December 31. Such a drastic cut will result in many physicians ending their participation in the Medicare program, and many senior citizens would no longer be able to obtain the medical care they need.

The bill before us would prevent cuts under Medicare's sustainable growth rate, or SGR, formula for the next 2 years with physicians receiving a 1 percent inflation update in each of those years.

As I've said before, we need to do away with the SGR once and for all so that doctors do not have to constantly worry about cuts to their Medicare payments. I'm disappointed that we've run out of time to consider permanent reform this year, but the Ways and Means committee has been carefully examining different options for replacing the SGR, and I'm hopeful that we can move forward with these efforts next year.

For now, this legislation gives physicians the longest period of payment since 2004, and it is fully paid for with reforms to Medicare and other Federal health programs. Many of these reforms have bipartisan support and were included in the President's deficit reduction proposal. I hope we will have a strong bipartisan vote for this bill.

Mr. Speaker, the American people understand the basic principle that you can't spend money you don't have. They live that reality on a daily basis. Unfortunately, Congress has disregarded this idea, choosing instead to imagine that it could spend money endlessly without harming our economy or standard of living. The result is that we're now an unthinkable $15 trillion in debt. Some argue that we don't need to amend the Constitution for Washington to do its job.

I'm proud to say that I served on the Budget Committee in the late 1990s

when we produced four consecutive balanced budgets. But the sad truth is that this kind of fiscal responsibility has been all too rare in recent years. Ultimately, a balanced budget amendment will force Congress to be serious about addressing the core driver of our debt, which is the out-of-control growth of Federal entitlement spending.

As the President has acknowledged, no taxpayer would be willing to pay the amount required to sustain the exponential growth of entitlements, and no amount of budget gimmicks can hide this serious crisis. A balanced budget is a commonsense idea that governs our personal lives, and it should also be at the heart of how Congress operates. I strongly support the balanced budget amendment, and I urge the House to pass it.

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.

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.

I yield the gentlewoman 1 additional minute.

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

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

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.

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

I continue to reserve the balance of my time.

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.

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

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

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

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.

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. 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.

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. 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.