Committee on Ways and Means
“Part of this markup is clearly non-controversial. I think most if not all of us agree that the three percent withholding provision should be repealed. The provision is not narrowly targeted and would impose significant and costly burdens on federal, state, and local governments.
“The withholding tax on payments to government contractors was misguided when it was enacted under a Republican Congress and a Republican President in 2005, and it is misguided now. In fact, this Committee approved a repeal of the provision in 2009, and we ultimately delayed its effective date.
“The second bill raises questions though. The so-called MAGI provision would result in some individuals losing health care coverage, and we need to proceed with care.
“In addition, if this provision is going to become the offset - and that isn’t clear - for the repeal of three percent withholding as we’ve been told, it raises additional questions.
“This is an offset that affects individuals, but it is being used to pay for the repeal of a provision that principally affects businesses. This committee has a long, and appropriate, history of not asking individual taxpayers to shoulder the burden of business tax provisions.
“I think perhaps even more importantly, this offset would affect individuals’ eligibility for tax credits and Medicaid under the Affordable Care Act. I think we are all well aware that this Committee is going to have to grapple with the issue of maintaining adequate payments to physicians under Medicare in order to ensure continued access to care. Using this health-related offset here would make paying for physicians payments all the more challenging.
“Finally Mr. Chairman, in your opening comments you mentioned jobs, I want note that this Committee still has not taken action, or even held hearings, on economic growth and job creation. The President has sent us a jobs proposal that would jumpstart our economy and create jobs for American workers. But so far I don’t know that a single committee in the House, including this committee, has held hearings on the American Jobs Act.
“We need to debate the President’s jobs plan and take action to strengthen our economic recovery. I hope this Committee will do so in the near future. The 14 million Americans who are still looking for work cannot afford to wait any longer."
