Guest Post by Martin Armstrong
The gig economy has exploded in recent years as people seek additional income to keep up with the rising living costs. The government has been attempting to exploit these workers for additional taxes for years. A new law implemented by the Biden Administration will force some businesses to classify gig workers as employees, raising costs for everyone involved.
According to a paper published by the University of Chicago, during the first year of the pandemic, there were 2.1 million new gig workers, and in 2021, an additional 3.1 million people took on gig work. Upwork found that 36% of the American workforce has been freelancing during the pandemic, which is an increase of 2 million over 2019. Nearly 2 million Americans drive for one of more rideshare services, such as Uber and Lyft. Reuters now estimates the number of gig workers in America to be closer to 3.4 million.
It costs companies about 30% more to hire someone as an employee rather than an independent contractor. There are state laws regarding independent contract or gig work, but this is the largest piece of legislation to be passed on the federal level.
The legislation is presented in a way that will protect workers from the big bad companies. In truth, the law will raise taxes on these workers who took on these low-skilled positions for extra income. This will prevent some from, say, working for both Lyft and Uber. Trade group Chamber of Progress believes that reclassification will result in $31 billion in lost revenue.
Companies will simply limit their workforce by necessity. When Governor Gavin Newsom approved raising California’s minimum wage to $20 under Bill 1228, countless people found themselves without a job. Pizza Hut fired over 2,000 delivery drivers right before the change was implemented. California Pizza Hut and PacPizza franchises eliminated delivery driver positions entirely.
So, the kid delivering pizzas a few nights a week during college will miss out on that opportunity because the government wants to tax him as an employee. “Gig” is simply a temporary contract intended to produce supplemental income. These positions were never meant to be full-time career paths. The government should explore why so many people are seeking multiple jobs instead of preventing people from seeking out additional sources of revenue.
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Taxation is one thing, but when there’s no cash, what are the hookers, strippers and drug dealers supposed to do? A world without them is very un-American.
Use some imagination Duck.
Barter!
Make a sign that says will work for cash.
Work as much as you cash jobs.
Starve the beast.
This is a war. The working class against the politicians.
the politicians are just the ‘useful idiots’
its the central bankers that control EVE R Y T H I N G
Will Work For Green Tip Ammo
Whether your hire is a contractor or an employee is arbitrary and can only be defined by the esoteric rules as applied by the sacrosanct IRS. Only they truly know if your employee is a 1099 or a 1040. Good luck and may the gods of the ass blistering audit be with you.
“There is no “magic” or set number of factors that “makes” the worker an employee or an independent contractor and no one factor stands alone in making this determination. Also, factors which are relevant in one situation may not be relevant in another.
The keys are to look at the entire relationship and consider the extent of the right to direct and control the worker. Finally, document each of the factors used in coming up with the determination.
Consequences of Treating an Employee as an Independent Contractor
If you classify an employee as an independent contractor and you have no reasonable basis for doing so, then you may be held liable for employment taxes for that worker (the relief provisions, discussed below, will not apply). See Internal Revenue Code section 3509 for more information.”
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-or-employee
ass blistering audit
When they send you the audit letter, just return it and say “wasn’t me”
Decline Offer of Contract
With the rules constantly changing, it is becoming more difficult to classify ANYONE as a contractor, which is their goal. it is much easier to tax employees and force the employer to withhold said taxes from their checks. There is a reason the democrats stuck funding for 85,000 new IRS employees in the “infrastructure” bill and it was not to go after the billionaires, it was to go after the lower middle class who avoid taxes.
If the working classes just made larger campaign donations, this wouldn’t be happening.
Host a few $20,000-a-plate BBQs in your back yard and you’ll be golden.
Large sums of money is the only voice that is heard in the District of Corruption.
Exempt.
Be an independent contractor. Don’t pay income tax.
We are taxed to high heaven on everything else.
Gonna tax MY labor, too? No thanks.
Tech, monopoly power, business regulations and more are what’s killing America’s workforce.
A new law implemented by the Biden Administration
Come on, Martin. It’s not a LAW, but simply a REGULATION implemented by the ruling bureaucracy.
Our granddaughter loves the gig jobs she has. She drives for a meal delivery service over the lunch hour, does personal shopping in the afternoon and works concerts/events in the evenings. It is the lifestyle that fits her at 21 and she is going to be devastated when she is dropped by some/all of these companies because of the costs associated with having an employee.
Fuck Joe Biden!
If payroll deduction were outlawed and workers made to write a tax check every month, the revolution would start in less than a year.
Start filing exempt.
But identify as a non US state national citizen, not a US CITIZEN or you will get in trouble.