Senate passes withholding repeal

WASHINGTON, Nov. 10 (UPI) -- The U.S. Senate without opposition passed a House Republican bill that would repeal the 3 percent withholding of payments to contractors.

The 3 percent withholding repeal bill cleared the chamber Thursday on a 95-0 vote with Sen. Olympia Snowe, R-Maine, voting present, The Hill reported. The legislation would repeal the current requirement that that federal, state and local governments withhold 3 percent of payments to contractors, as well as scale back last year's healthcare law to disqualify some middle-income Americans from Medicaid.

The Obama administration said it supported repeal of the 3 percent withholding legislation because it would "reduce a burden on government contractors who otherwise comply with their tax obligations, particularly small businesses," the Office of Management and Budget said in a release.