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ICYMI: Tax Reform for the Growing Gig Economy

WASHINGTON—Today, Heidi Pickman, theCommunications and Policy Director of the California Association of Micro Enterprise Opportunity, released an op-ed in support of Chairman Steve Chabot's (R-OH) bill, H.R. 3717, the Small Business Owners' Tax Simplification Act.

"As Congress debates tax reform, we hear lots about the middle class, corporations, and the 1 percent, but we haven’t heard much about the gig economy, and we should," stated Heidi Pickman.

"What is the gig economy? Do you include independent contractors, consultants, and freelancers? Temp agency and on-call workers? Workers on a company contract?" said Pickman. "People involved in these work arrangements account for 30 million workers or about 20 percent of the labor force; a number that is growing at a rate faster than general total employment. If you include people who do some very part-time independent work, you end up with about70 million people involved in the gig economy, or 36 percent of the workforce."

Pickman continued, "The House Small Business Committee is on the right track with H.R. 3717, the Small Business Owners’ Tax Simplification Act, with a similar bill being discussed in the Senate. The bill would make several changes that would provide simplification and clarity to the tax code for entrepreneurs and startups; it would allow for voluntary withholding agreements and training services through the platforms without impacting a worker’s classification status and enable these business owners to participate in Cafeteria Plans or flexible spending accounts."

Click HERE to read full article.

H.R. 3717 Background:

The overwhelming majority of businesses in the United States are categorized as small businesses; yet, the nation’s job creators face a multitude of inequities with regard to tax policy.

Specifically, H.R. 3717 will help level the playing field for small businesses and provide clarity for entrepreneurs and startups as they face the complexity and uncertainty of the tax code. From updating signature requirements and anti-fraud measures to the treatment of cafeteria plans, the Small Business Owners’ Tax Simplification Act of 2017 will advance the United States Internal Revenue Code, just as technology is advancing how companies reach customers.


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