Senate to Replace Law Withholding Payments with Tax Credits

Senator Roy Blunt said the Senate is expected to move forward Wednesday and eliminate a law requiring the federal, state and local government to withhold 3 percent of their payments to contractors starting in 2013.

By Julie Bierach (St. Louis)

The Republican Senator said he has been opposed to the law for a long time.

An amendment to the measure is expected later this week would give tax credits to companies that hire veterans and to provide vets with more job training and other services. On Monday, President Obama said he expected lawmakers from both parties to approve the measure. Blunt said he agrees with the President.

“I think this is one of the examples I’ve consistently given of one of the things I could be for that the President said he’d like us to do in what I don’t think is a great jobs bill, but this a sliver of that bill that does help those we need to honor. ”

The repeal of the 3 percent withholding and the tax credits to hire veterans have bipartisan support in the Senate.