IB 
Union Calendar No. 169 
112TH CONGRESS 
1ST SESSION 
H. R. 674 
[Report No. 112–253] 
To amend the Internal Revenue Code of 1986 to repeal the imposition 
of 3 percent withholding on certain payments made to vendors by govern-
ment entities. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 11, 2011 
Mr. HERGER (for himself, Mr. BLUMENAUER, Mr. NUNES, Mr. RANGEL, Ms. 
BERKLEY, Mr. BURTON of Indiana, Mr. CONNOLLY of Virginia, Mr. 
MCCLINTOCK, Mr. PETRI, Mr. VAN HOLLEN, and Mr. WILSON of South 
Carolina) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
OCTOBER 18, 2011 
Additional sponsors: Mr. DUNCAN of Tennessee, Mr. COFFMAN of Colorado, 
Mr. LARSEN of Washington, Mrs. CAPITO, Mr. HELLER, Mr. YOUNG of 
Alaska, Mr. GERLACH, Mr. JONES, Mr. GRAVES of Missouri, Mr. 
CANSECO, Mr. FORTENBERRY, Mr. MCCOTTER, Mr. ROSS of Florida, Mr. 
BRALEY of Iowa, Mr. PAULSEN, Ms. FOXX, Mr. AKIN, Mr. COURTNEY, 
Mr. YARMUTH, Mr. WALBERG, Ms. JENKINS, Ms. HAYWORTH, Ms. 
BALDWIN, Mr. CHAFFETZ, Mr. MORAN, Mr. BRADY of Texas, Mr. 
THOMPSON of Pennsylvania, Mr. HUNTER, Mr. BUCSHON, Mrs. MCMOR-
RIS RODGERS, Mr. CALVERT, Mr. BOSWELL, Mr. KING of Iowa, Mrs. 
LUMMIS, Mr. LONG, Mr. DAVIS of Kentucky, Mr. SCHOCK, Mr. OLSON, 
Mr. FILNER, Mr. CUELLAR, Mr. MANZULLO, Mr. JACKSON of Illinois, 
Mr. CHANDLER, Mr. ROE of Tennessee, Mr. LATOURETTE, Mr. SENSEN-
BRENNER, Mr. AUSTRIA, Mr. ISRAEL, Mr. LIPINSKI, Mr. HECK, Mr. 
GARY G. MILLER of California, Mr. COSTA, Mr. HANNA, Mr. BISHOP of 
New York, Mr. RUPPERSBERGER, Mr. LOBIONDO, Mr. LANKFORD, Mr. 
UPTON, Mr. BILBRAY, Mr. SCHRADER, Mr. THORNBERRY, Mrs. BACH-
MANN, Mr. YODER, Mr. SIMPSON, Mr. PAUL, Mr. HULTGREN, Mr. 
TOWNS, Mr. HUIZENGA of Michigan, Mr. WOLF, Mrs. SCHMIDT, Mr. 
PITTS, Mr. SESSIONS, Mr. MICHAUD, Mr. LARSON of Connecticut, Mr. 
TIBERI, Mr. TERRY, Mr. KLINE, Mrs. ROBY, Mr. RENACCI, Mr. CAR-
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DOZA, Mr. MURPHY of Connecticut, Mr. JOHNSON of Georgia, Mr. WITT-
MAN, Mr. GENE GREEN of Texas, Mr. WU, Mr. CUMMINGS, Mr. STIVERS, 
Mr. CASSIDY, Mr. MCKINLEY, Mr. LATHAM, Mr. QUAYLE, Mr. ISSA, Mr. 
STUTZMAN, Mrs. MALONEY, Mr. WESTMORELAND, Mr. BISHOP of Utah, 
Ms. HIRONO, Mr. JOHNSON of Ohio, Mr. WALSH of Illinois, Mrs. 
MYRICK, Mr. BACHUS, Mr. GIBSON, Mr. GARDNER, Mr. GOSAR, Mr. 
CRAVAACK, Mr. RIGELL, Mr. JORDAN, Mr. PALAZZO, Mr. BOUSTANY, 
Mr. SMITH of Washington, Mr. RIBBLE, Mr. LEWIS of Georgia, Mr. 
LOEBSACK, Mr. MULVANEY, Mr. LANDRY, Mr. ROSKAM, Mr. HIMES, Mr. 
ALTMIRE, Mrs. ELLMERS, Ms. HERRERA BEUTLER, Mr. SCOTT of South 
Carolina, Mr. LUJA´N, Ms. DELAURO, Mr. DIAZ-BALART, Mr. FLEMING, 
Mr. OWENS, Mrs. BLACK, Mr. RAHALL, Mr. MURPHY of Pennsylvania, 
Mr. DENT, Mr. GIBBS, Mr. LUETKEMEYER, Mr. HARPER, Mrs. BIGGERT, 
Mr. POMPEO, Mr. BROUN of Georgia, Mr. LANCE, Mr. TIPTON, Mr. 
STEARNS, Mr. RUNYAN, Mr. SARBANES, Mr. GOWDY, Ms. ROS- 
LEHTINEN, Mr. HUELSKAMP, Mr. DOLD, Mrs. NOEM, Mr. LATTA, Ms. 
CASTOR of Florida, Mr. HASTINGS of Washington, Mr. BURGESS, Mrs. 
BLACKBURN, Mr. FLORES, Mr. CAMPBELL, Mr. GRIFFIN of Arkansas, 
Mr. SMITH of Texas, Mr. ROGERS of Kentucky, Mr. CARTER, Mr. 
BISHOP of Georgia, Mr. DESJARLAIS, Mr. GRIMM, Mr. WOODALL, Mr. 
HEINRICH, Mr. HOLDEN, Mr. PLATTS, Mr. MILLER of Florida, Mr. 
GUINTA, Mr. TURNER
of Ohio, Mr. WALZ
of Minnesota, Mr. 
FARENTHOLD, Mr. ROGERS of Alabama, Mr. SCALISE, Mr. ROKITA, Mr. 
MACK, Mr. NUNNELEE, Mr. CHABOT, Mr. DUNCAN of South Carolina, 
Mr. DUFFY, Mr. SHUSTER, Mr. FRANKS of Arizona, Mr. REHBERG, Mr. 
WEST, Mr. CRAWFORD, Mr. HARRIS, Mrs. EMERSON, Mr. PRICE of Geor-
gia, Mr. SCHWEIKERT, Mr. HIGGINS, Mr. MARCHANT, Ms. BUERKLE, 
Mr. LAMBORN, Mr. YOUNG of Indiana, Mrs. MILLER of Michigan, Mr. 
KELLY, Mr. KINZINGER of Illinois, Mr. GINGREY of Georgia, Mr. 
MCKEON, Mr. HINCHEY, Mr. CLEAVER, Mr. ROGERS of Michigan, Mr. 
BENISHEK, Mr. REED, Mr. ROSS of Arkansas, Mr. WOMACK, Mr. RI-
VERA, Ms. ESHOO, Mr. BARLETTA, Mr. HALL, Mr. GUTHRIE, Ms. 
GRANGER, Mr. BARTLETT, Mr. FORBES, Mr. SCHILLING, Mr. GOHMERT, 
Mr. ROYCE, Mr. AMASH, Mr. BONNER, Mr. BASS of New Hampshire, Mr. 
KILDEE, Mr. HURT, Mr. WEBSTER, Mr. REICHERT, Mr. DONNELLY of 
Indiana, Mr. FITZPATRICK, Mr. POSEY, Mr. PENCE, Mr. PETERS, Mrs. 
ADAMS, Mr. WALDEN, Mr. FRELINGHUYSEN, Mr. PEARCE, Mr. ROONEY, 
Mr. AUSTIN SCOTT of Georgia, Mr. ALEXANDER, Mr. NEUGEBAUER, 
Mrs. HARTZLER, Mr. MCCAUL, Mr. MICA, Mr. GARRETT, Mr. MATHE-
SON, Mr. LABRADOR, Mr. CONAWAY, Mr. JOHNSON of Illinois, Mr. CREN-
SHAW, Mr. BILIRAKIS, Mr. MCNERNEY, Mr. COLE, Mr. BUCHANAN, Mr. 
GRAVES of Georgia, Mr. SAM JOHNSON of Texas, Mr. GALLEGLY, Mrs. 
CAPPS, Mr. BERG, Mr. PASCRELL, Mr. KIND, Mr. KINGSTON, Ms. 
BROWN of Florida, Mr. SMITH of Nebraska, Mr. FLAKE, and Mr. RYAN 
of Wisconsin 
OCTOBER 18, 2011 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
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A BILL 
To amend the Internal Revenue Code of 1986 to repeal 
the imposition of 3 percent withholding on certain pay-
ments made to vendors by government entities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. REPEAL OF IMPOSITION OF 3 PERCENT WITH-
HOLDING ON CERTAIN PAYMENTS MADE TO 
VENDORS BY GOVERNMENT ENTITIES. 
(a) IN GENERAL.—Section 3402 of the Internal Rev-
enue Code of 1986 is amended by striking subsection (t). 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to payments made after December 
31, 2011. 
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