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A last-minute insert by Democrats looking to offset the cost of their coronavirus aid package would send tax collectors into the gig economy, eventually costing Uber and DoorDash drivers, Airbnb hosts and others about $1 billion annually.
Under current law, such online platforms only have to report to the IRS when they pay individuals at least 200 times a year, for a minimum $20,000. The change inserted into a managers' amendment just before House floor debate on the $1.9 trillion measure would cut that threshold to $600, regardless of how many transactions, generating an estimated $8.4 billion in extra tax revenue through fiscal 2031.
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Now, the stiffer tax burden would be imposed while 10 million Americans are unemployed and more and more have turned to freelance and gig economy work to make ends meet. Cutting the reporting threshold "adds a significant burden to gig economy and small business workers at the worst possible time," TechNet spokesman Steve Kidera said in an email.
I can't post the whole article, but they have been eyeing to tap into this market for tax revenue for awhile... and they did it via a last minute addition.
This bill should be called "COVID Trojan Horse Legislation" - as COVID is the cover for all of the hidden nonsense that's in the bill.
A last-minute insert by Democrats looking to offset the cost of their coronavirus aid package would send tax collectors into the gig economy, eventually costing Uber and DoorDash drivers, Airbnb hosts and others about $1 billion annually.
Under current law, such online platforms only have to report to the IRS when they pay individuals at least 200 times a year, for a minimum $20,000. The change inserted into a managers' amendment just before House floor debate on the $1.9 trillion measure would cut that threshold to $600, regardless of how many transactions, generating an estimated $8.4 billion in extra tax revenue through fiscal 2031.
I can't post the whole article, but they have been eyeing to tap into this market for tax revenue for awhile... and they did it via a last minute addition.
This bill should be called "COVID Trojan Horse Legislation" - as COVID is the cover for all of the hidden nonsense that's in the bill.
How much taxes do you think they would have to pay on $600?
How much taxes do you think they would have to pay on $600?
More than they did last week...
Maybe you think Uber drivers and door dash delivery people just have disposable money to just give away for taxes.
Nina Olson, who ran the IRS's taxpayer advocate services for 18 years, predicted the estimated tax revenue will prove elusive because many gig workers who are paid by Uber, Lyft, DoorDash, Grubhub, TaskRabbit and the like are living paycheck to paycheck and won't be able to pay the bill.
“Workers who are underreporting their income now will become guilty of nonpayment next year and subject to penalties and actions by the agency,” Olson said.
Olson added that an IRS collection action “can destroy a person’s life,” as employers can be hesitant to hire someone with a federal tax lien and lenders won’t make loans without charging the highest interest rates.
And then there are the hidden dynamics...
Etsy, the online marketplace that caters to one-person shops making handmade items like clothing and jewelry, is also lobbying against the proposal. The company was among the signatories on a letter last week to congressional leaders opposing the change, arguing it “will create unexpected challenges for small business owners and entrepreneurs across the Main Street ecosystem.”
An Etsy spokesperson, who didn’t want to be identified in order to speak candidly, said one concern was that in order to supply the necessary tax forms, they’d need to obtain a seller’s Social Security number up front. That could turn away entrepreneurs from using the Etsy platform before they have a chance to grow their business, the spokesperson said.
Why do you think Democrats didn't make this public - since you say it is no big deal?
I am a uber driver. Uber and lyft send 1099 on over $600 already. Plus unless they take away the mileage allowance at tax time then this is a non issue. Miles more than offset income in the gig economy.
What percentage of the covid relief bill is actual covid relief? I saw a thread about this recently but can't find it. I remember it was a really small fraction.
USA Today is part of the msm cabal, & when they start spewing propaganda to support more fed control, you know its bad for the 99%.
Small businesses, & the exploding GIG economy, are an obstacle to centralized control. The feds are attempting to clamp down on both through bank transactions & the tax code.
Uber/Lyft drivers are already being 1099'd for earnings as low as just $600, but most gig workers are not. The IRS says they are losing Hundreds of Billions in lost taxes due to small businesses, & the gig economy workers under-paying. Are they really? Or, is this just another power grab?
The Feds & IRS prefer for all of us to work for the Fortune 500, for measly wages, so we can be more easily controlled by their pals, & so they can squeeze every last tax dollar out of us, & so they can steal more from us. They are aggressive parasites with stomaches larger & more powerful than a Black Hole.
The top 1% + Fortune 500 + the Fed gov't are attacking the 99%, & winning. This is a prime example of it.
We must vote to shrink fed spending, fed gov't headcount, & fed regs that seek to control us, & the labor we provide. If we don't, we'll become their slaves.
The $600 limits must be stopped, & if implemented, then reversed in 2022 by new House & Senate leadship.
Their (mostly Dems, but some Pubs to) real endgame is this...traditional American workers are compelled by law, to have federal taxes withheld, & all income tracked by employers. Investment income too is tracked by banks, & investment firms like Vanguard & Schwab.
Small businesses & Gig workers are not compelled & controlled. Instead, they voluntarily report, withhold, & pay taxes. The parasites voracious appetite smells a meal here, in money & power, so they are going after it. Any potential tax losses aside, they know this is one of their largest vulnerabilities, & obstacles to total control.
Can anyone here figure out how small businesses, & the growing gig economy, makes the top 1% highly vulnerable? Hint...there's 1 word in this post that is the clue.
As a member of the small biz community & gig economy, I pay all my taxes, so that is not my fear in all this, its something much larger I fear. Can you figure out what it is?
Maybe it’s me, maybe I’m an unreasonable idiot, but I was thinking that maybe, maybe they should think of ways to cut spending? You know like try to save money? Instead of spending the crap out of money we don’t have and then punishing citizens for it by trying to come up with ways to penalize(tax) us? Maybe I’m just crazy.
I am a uber driver. Uber and lyft send 1099 on over $600 already. Plus unless they take away the mileage allowance at tax time then this is a non issue. Miles more than offset income in the gig economy.
I am a uber driver. Uber and lyft send 1099 on over $600 already. Plus unless they take away the mileage allowance at tax time then this is a non issue. Miles more than offset income in the gig economy.
What happens if they pass the mileage tax that they have been threatening?
There are lots of hidden taxes in these bills in Congress that will effect everyone...not just "the rich".
And that is because the Fed wants "their fair share".
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