A law scheduled to go into effect in 2013 requires federal, state, and local governments to withhold 3 percent from payments for goods and services. The law would be a constant cycle because funds would br withheld one year, recouped the following year, but then also withheld again.
Withholding funsa amounts to floating the federal government an interest-free loan. Businesses would have 3 percent less to spend, affecting day-to-day operations and future growth. State and local governments would stress their already strained budgets administering this program.