House to Repeal Law Withholding Contractors' Taxes

WASHINGTON – Both parties in the House are ready to vote to repeal a law requiring federal, state and local governments to withhold 3 percent of their payments to contractors.

The 5-year-old law was designed to force scofflaws who perform government work to pay all their taxes. Federal investigators have found tens of thousands of contractors who owe billions of dollars to the government.

That drive to crack down on tax cheats now ranks well behind a stronger imperative, which is lawmakers' desire to show voters they are trying to preserve jobs.

The House vote is scheduled for Thursday. President Barack Obama supports scrapping the law.

Remaining disagreements focus on how to make up the estimated $11 billion the government would lose from repeal.