Washington (CNN) - The U.S. House voted Thursday to repeal a tax withholding measure for government contractors that never took effect.
Under the measure repealed by the 405-16 vote, all bills paid by the federal government for goods, services or property after January 1, 2012 would have been subject to a 3% tax withholding.
The original provision was a revenue-raiser inserted into the Tax Increase Prevention and Reconciliation Act signed by President George W. Bush back in 2006 with the intention of ensuring that contractors hired by the government paid what they owed in taxes.
However, widespread opposition by contractors, President Barack Obama and both parties ensured the measure's repeal. The House repeal now goes to the Senate, where Democrats and Republicans have differed on how to pay for it.