Tax Plans May Give Your Co-Worker a Better Deal Than You

[DonViejo]

Source: New York Times




By PATRICIA COHENDEC. 9, 2017

In most places, a dollar is a dollar. But in the tax code envisioned by Republicans, the amount you make may be less important than how you make it.

Consider two chefs working side by side for the same catering company, doing the same job, for the same hours and the same money. The only difference is that one is an employee, the other an independent contractor.

Under the Republican plans, one gets a tax break and the other doesn’t.

That’s because for the first time since the United States adopted an income tax, a higher rate would be applied to employee wages and salaries than to income earned by proprietors, partnerships and closely held corporations.


Read more: https://www.nytimes.com/2017/12/09/business/economy/tax-plans-may-give-your-co-worker-a-better-deal-than-you.html

[turbinetree]

1. This is just fucked up--------------they are gutting the IRS

and your hear advertisement that you can get your taxes adjusted by calling some fucking 800 number.

Then to truly look at how this scam is played out, just think of temporary workers, working at national parks, remember how these entities (private) corporation at these shops, assigned the workers as contractors, so that they could pay shit, no benefits, nothing but then have a contract to sell you and me a bottle of water on the property we own at a profit........................never mine that the taxpayers supplied the building, the road, and we pay for the up keep, lights and such, but they could have slave labor.................

2018 cannot get here fast enough---------------this is just total BS, we have now entered into serfdom and total class warfare, justs by your employment designation if you pay taxes or not

[FakeNoose]

13. This is a CEO's wet dream

Employers would LO-O-OVE to have all their employees quit their full-time jobs, leave all their benefits behind, and get re-hired under contract pay. Companies would save so much money it's unreal. Don't anybody do it - it's all a scam.

[iluvtennis]

2. Just shameful. Both are chefs. Guess thise of us who are employees

Need to become independent contractors which means we give up our employee based health benefits

[Rincewind]

9. It's not just health benefits,

half of your social security and Medicare taxes are paid by your employer. If you are and "independent contractor, you pay the full amount. So they are giving a "tax break " with one hand, and taking even more with the other hand. This is probably to encourage more people to become independent contractors, and lose employee protections, and unemployment insurance, and workers comp insurance.

[iluvtennis]

15. U make good points. Just evil and will loop in the non critical thinkers

[Igel]

11. And that's part of it.

You're an employee. You get benefits.

You're not, you pay for your own. And you pay the full employment tax amount.

As it is now, two chefs could be working side by side and get paid the same amount, but the first gets insurance, unemployment benefits if laid off, and only pays half of the employment tax. The other does. The difference? Many thousands of dollars.

Do I even know what the new tax plans would say? Nope.

But the idea that they're imposing injustice on the sane, fair tax scheme that's been around for years--including under Obama, as well as under Bush II--strikes me as ludicrous.

The article that's worth reading is one that looks at all the current facts for the state of affairs versus projected. Not just at selected facts versus projected.

[ileus]

14. Our Chef is already contracted out...

Along with the entire kitchen staff.

[Angry Dragon]

3. Just a stupid evil tax plan

Gee we hope these companies make new jobs and pay their people better but we really don't know if they will
but we trust they will

[iluvtennis]

16. Don't have any trust that companies will use the tax breaks to create more jobs and pay ppl

better. Quite the contrary, the companies will bank the monies and give to their investors - giving to investors is another tax break.

If Don the Con was the deal maker that he claims to be, he would have pre-negotiated with the companies and got things in writing before cutting the tax rate from 35% to 20%.

But we all know Trump want the tax cut for his businesses..that's his # 1 goal - the benefit to him.

[flibbitygiblets]

4. The employee chef would have just spent it on women and booze.

The other one would have invested it. Quoth the great Chuckles Grassley.

[getagrip_already]

5. It's going to drive a lot of highly compensated employess to 1099 status...

Think about it. If you make $200k in salary, you will be taxed at about 32%. But if you get your employer to make you a contractor, which saves them a bundle in taxes and benefits, you will pay 20%. You can probably even increase your pay because of the savings to your employer.

That's $24k in savings. Sure, you will have some fica charges and have to buy health insurance, but you would still be ahead.

It will further drive up the deficit, and further hurt w-2 wage earners as benefit packages dwindle.

[Bengus81]

8. Your employer can't just make you a sub contractor instead of an employee.....

They can try but the IRS will bust them eventually.

[getagrip_already]

19. irs? ;)

Not anymore. They will be way too busy busting waitresses for not reporting tips to bother looking at employer compliance.

Seriously, corporations have little to worry about under trump.

[Bernardo de La Paz]

6. Business hates full time, loves employing contractors: fewer benefits, easier to fire. . . . nt

[Bengus81]

7. Hell,that's gone on in Kansas since 2013

It's now been overturned before we go 100% BK but until then the owner of an LLC,S Corp etc. paid a zero % tax rate while his or her employees paid the going rate. Funny how the rhetoric to pass that POS was exactly what Trump and his thugs use.

Huge job creation,Corporations moving here in droves,high wages,huge expansion plans...blah,blah,blah. How much of that happened in 4+ years? NONE OF IT.

[IronLionZion]

10. It's about time contractors got a break

but this is not the way to do it. They are deliberately trying to divide us against each other of course, but also to encourage companies to use expendable contractors instead of long term employees.

I've always been a contractor, and always wanted to be a full time employee. These assholes are trying to make it even more difficult.

[BumRushDaShow]

12. Seems like they stuffed this with everything they ever wanted

to make this their wet dream, with the hope that at least some of the obvious screw-job provisions would be enacted and the rest would be hidden in the gobbledygook.

[iluvtennis]

17. Indeed

[BigmanPigman]

18. If you do not approve of it than RESIST!

This is NOT OVER! People have been organizing and there is a lot that YOU, me and everyone we know can do and DO it NOW!
I was part of the Not One Penny nationwide phone call with Indivisible, Cory Booker, Bernie, MoveOn, etc. We all need to get up and be active instead of whining that it is over, that is GOP and MSM BS used to distract us. The bill is not a win, it is a disaster and we can stop it. There are still a few weeks left and the three things we must do...
1. Attend protests, town halls, etc and make sure the media is there, no matter how big or small it is. The media has been absent due to the non stop distractions. There are many important issues but this is our BIGGEST PRIORITY for the next few weeks.
2. Keep up the CALLS. They started late but eventually their staffers were busy ...call, tell your family and friends in other states to call too. [phone]
https://www.trumptaxscam.org/
3. Social media is crucial. Retweet and share whatever you can. Send it to the media. Events, town halls, protests are occurring and over 100 are planned for this week alone. Bernie, Cory Booker, Indivisible, MoveOn have been going to Kentucky, Ohio and PA all weekend.

New info is already coming out. One new fact since the Fri vote is that there will be 1/2 trillion more dollars added to the deficit. Only 28% of Americans approve of the Tax Scam. This week Ryan will appoint Repub to his closed door "conference committee" and then we can target those reps. The house and senate have to "negotiate a compromise". What they voted on is different in each chamber. For now we know of 28 Rep congressmen who voted against one of the two bills/plans. We need to flip 23 of them. The Senate will need to be PRESSURED NON STOP...this means calling the 9 senators that were wavering. If we get Alabama we only need two more senators with Corker. This would be great.
We have been the catalysts of the grass roots efforts for a year and have stopped major legislation. We have a few more weeks until the holidays. After that we have to spread the word about what the GOP has done to the stability and future of our country with this tax cut for the rich and they are taking money from the sick and poor which will bankrupt millions and take over 13 million off of health care. Meanwhile tax cuts for multi million dollar corporations will not be trickling down at all and never will. The bill ensures that the country will be taxed more over the next 10 year (but not the corporations...you and me are paying).
Call [phone]

We must HAMMER them on this bill. Put pressure on these greedy, cruel eastwards and DO NOT STOP!

[RandomAccess]

20. Unbelievable

We're turning into a dystopia and no one who can will do anything about it.

Edit: In fact, they're the ones responsible for it!