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If I understand Congress’ power correctly, under a Contempt of Congress order, it has the power to incarcerate the person cited until such time as they decide to release him, the person testifies, or the current Congressional session ends. The next session has the power to do it all over again.

In that regard, there is no Holder to this, really. It is beyond his purview and powers, IMO.

The resolution that was voted on and passed refers the citation to the US Attorney for DC for consideration. From H. Rept. 113-415 ...

There is no constitutional impediment to (i) the Committee approving a resolution recommending that the full House hold Ms. Lerner in contempt of Congress; (ii) the full House approving a resolution holding Ms. Lerner in contempt of Congress; (iii) if such resolutions are approved, the Speaker certifying the matter to the United States Attorney for the District of Columbia, pursuant to 2 U.S.C. S:194; and (iv) a grand jury indicting, and the United States Attorney prosecuting, Ms. Lerner under 2 U.S.C. S:192.

I do agree that Congress could act just as you outlined. The majority in the House chose not to. The text of H.Res.574 is ...

House Resolution 574
Resolved, That because Lois G. Lerner, former Director, Exempt Organizations, Internal Revenue Service, offered a voluntary statement in testimony before the Committee, was found by the Committee to have waived her Fifth Amendment Privilege, was informed of the Committee's decision of waiver, and continued to refuse to testify before the Committee, Ms. Lerner shall be found to be in contempt of Congress for failure to comply with a congressional subpoena.
Resolved, That pursuant to 2 U.S.C. Sec. 192 and 194, the Speaker of the House of Representatives shall certify the report of the Committee on Oversight and Government Reform, detailing the refusal of Ms. Lerner to testify before the Committee on Oversight and Government Reform as directed by subpoena, to the United States Attorney for the District of Columbia, to the end that Ms. Lerner be proceeded against in the manner and form provided by law.
Resolved, That the Speaker of the House shall otherwise take all appropriate action to enforce the subpoena.