Business coalition pushes repeal of withholding rule

But a 2009 congressional estimate said that doing away with the 3 percent withholding requirement would keep the government from collecting almost $11 billion.

The provision, enacted in 2006, has yet to go into effect and has seen its implementation delayed twice in recent years — once by the stimulus package and, more recently, by the IRS. The requirement is now set to go live at the beginning of 2013. 

Rep. Wally Herger (R-Calif.), a senior member of the House Ways and Means Committee, has a repeal bill that has attracted a bipartisan group of roughly 150 co-sponsors, and Herger has said he has discussed the measure with Rep. Dave Camp (R-Mich.), the chairman of the tax-writing panel. 

A pair of repeal bills in the Senate has so far garnered mostly GOP support.