Democrats Just Snuck a $1 Billion Tax Hike on Workers Into Their COVID Bill – IOTW Report

Democrats Just Snuck a $1 Billion Tax Hike on Workers Into Their COVID Bill

Saturday, 6 March 2021, 18:45 MJA Uncategorized 20

FEE:

A tax expert warned that IRS penalties ‘can destroy a person’s life’ and said many gig economy workers won’t be able to afford this sudden tax hike.

When the economy is struggling to recover from a pandemic and crushing government lockdowns, that’s probably the worst time to impose $1 billion in new annual taxes on the working class. But that’s exactly what a new provision quietly slipped into the Democrats’ sweeping $1.9 trillion COVID legislation would do. 

“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,” Roll Call reports.

Under current tax law, earnings data for gig economy workers only needs to be reported to the IRS once it reaches $20,000. This means that small earners pursuing gig work to supplement their income aren’t hit by crushing federal taxes. However, the Democrats’ provision would nearly eliminate this benchmark, and instead require all income above $600 to be reported to the IRS.

“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,” Roll Call notes.

Indeed it would, and this would be disastrous for both workers and the economy. read more

20 Comments on Democrats Just Snuck a $1 Billion Tax Hike on Workers Into Their COVID Bill

  3. My wife does freelance work for us to “make ends meet,” and has already been 1099’d for anything over $600 for years, so I’m confused what’s changing for these gig and freelance workers??

    It pisses me off every year when she hands me a stack of 1099s at tax time with about 30% of them for around $602. I’m like.. BRILLIANT! So you made $2 over and now we have to shell out a couple hundred bucks. She has to make something like $840 before we get 600 bucks, otherwise her rates need to be pegged at $599. But she can’t because, get this, the STATE sets her rates!

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  4. I wonder what the UA local Pipe fitters & welders will think about this 2 months after major pipeline cancellations. They are still supporting Biden based on his overall “plan” FFS.

    Also Oil per barrel is rising because of production cuts from Saudi Arabia, Canada and other producers.

    Great Timing Fuckers!

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  6. IRS forces everyone to be criminals. We become criminals for the sake of survival.

    And, all the while, the IRS agents are paid by US to get that last drop of blood out of that turnip.

    What a system……

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  10. Any of you folks ever look at the people who don’t do a damn thing but collect government freebies and wonder to yourself if you’re on the wrong side of things?

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  19. That’d only be $278 per person. Seems kinda small.

    I’m sure they’re hiking taxes and other fees to a tune of far more than a $Billion.

    izlamo delenda est …

  20. Every tax comes with a second and third price tag.
    Example- What is a company going to take from the employee in pay rate because of their own taxes going up? And what is the individual state, county, or city going to raise the citizens’ tax rates to?

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