Monday, March 29, 2010

With healthcare behind them, politicians eye Independent Contractors

March 24, 2010
Dear Independent Contractor,
With the healthcare bill passed, Washington politicians will be gearing up to focus their attention elsewhere, including legislation that threatens the way millions of Americans make a living and support their families: independent contracting. Proposed federal legislation includes a complex set of new rules defining who is allowed to be an IC – more complex rules with threatened heavy penalties to deter companies from hiring ICs.
As highlighted in a recent San Jose Mercury News article, politicians continue to either miss or ignore important facts about our healing economy – particularly in Silicon Valley and other tech centers where thousands of highly-skilled ICs work in the technology sector. In an area – and industry – hit especially hard by the recession, why would our lawmakers want to do something to hamper growth and recovery? The answer is simple: hidden agendas and budget deficits.
The proposed legislation – sponsored by Sen. John Kerry, D-Mass., and Rep. Jim McDermott, D-Wash. – would give the IRS more power to go after employers. Additionally, it would increase fines tenfold, meaning some fines would end up being $1 million. Startling, isn’t it?
Many politicians either refuse to see or ignore the fact that ICs are part of the solution – able to speed up economic recovery and allow businesses of all sizes to survive in today’s economic climate.
Some experts now fear a startling trend — U.S. small businesses becoming hesitant to hire ICs for fear of steep fines and confusing classification issues.
Those of us who are independent contractors – or who hire them – must act now, before it’s too late. After all, every day we’re a little closer to new laws that could do irreversible damage.
If you’re an IC – or a company that relies on them – visit to voice your opinion about proposed legislation that threatens your livelihood. And as another reminder, look for continuing updates and news at
David Dunnigan
Executive Director
Coalition for Independent Contractor Freedom

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