Congressmen Herger and Meek (D-FL) drafted a bill to repeal the three percent withholding tax scheduled to begin in 2011. The withholding tax would apply to governments with expenditures of greater than 100 million USD on services from for-profit companies. The law mandates that governments will only deliver 97 percent of a contract to the contractor, and send the remaining 3% to the IRS. Vendors and contractors are expected to increase their bid values to cover this new cost. The National Association of Counties thinks that this will give Counties a competitive disadvantage when dealing with vendors and contractors. (Counties assess costs of federal '3-percent withholding law')