A bill relating to withholding, for purposes of the income tax imposed by certain cities, on the compensation of Federal employees.

Provides that the Federal government will withhold sums from its employees' compensation whenever a city provides for tax collection by withholding the tax on employees. Forbids Federal agencies from accepting compensation from the State or city for services of withholding tax. Defines "city" to mean only a city which is incorporated under State law, and which had a population of at least sixty thousand according to the last decennial census.