NEW YORK (WCBS 880) – A new federal law asks states to cooperate in insuring that vendors doing business with them are paying their federal taxes in full.

The federal government is now requiring the states involved to withhold three percent of payments from vendors with whom they do business, reported WCBS 880’s Fran Schneidau.

WCBS 880’s Fran Schneidau talks with the comptroller who is opposed to the law.

But, Connecticut state comptroller Kevin Lembo says it puts a burden on these businesses that could lead to lost jobs and productivity.

“We may even see an increase in prices as businesses try to recoup the cash flow they had anticipated by raising their prices,” said Lembo.

It would cost the states more to comply, said Lembo, and he’s urging repeal of the new law.

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