Teamsters Praise (Kerry) Bill to Close Loophole for Tax Cheats

[ProSense]

Teamsters Praise Bill to Close Loophole for Tax Cheats

December 15, 2009

Hoffa Thanks Sen. Kerry for Supporting Workers

(Washington) –Teamsters General President Jim Hoffa said the union strongly supports the Taxpayer Responsibility, Accountability and Consistency Act of 2009 filed today by Sen. John Kerry, D-Mass.

The bill would close a loophole that allows employers to avoid paying Social Security and Medicare taxes, withholding income taxes and contributing to workers’ compensation and unemployment insurance.

Companies escape those responsibilities by misclassifying their employees as “independent contractors.”

“Misclassification hurts responsible employers who pay their taxes, provide health insurance and respect their workers’ right to join a union,” Hoffa said. “It lets unscrupulous employers cheat workers out of benefits they’re entitled to.”

“It’s time to level the playing field so companies that play by the rules aren’t at a competitive disadvantage to companies that cut corners by misclassifying their employees,” Hoffa said. “I’d like to thank Sen. Kerry for sponsoring this important legislation.”

As many as 30 percent of all employers misclassify their employees as “independent contractors,” according to the U.S. Department of Labor.

In Massachusetts, the rate of misclassification rose to 13.4 percent between 2001 and 2003 from 8.4 percent between 1995 and 1997.

The federal government lost an estimated $34.7 billion in tax revenue between 1996 and 2004.

The bill removes the loophole that allows businesses to bypass the Internal Revenue Service’s test of whether a worker is an employee or an independent contractor.

It would also require businesses that pay more than $600 to corporate providers of property and services to file information with each providers and the IRS.

And it would allow employers to treat employees as contractors only if the decision was based on a written determination or tax examination by the IRS.

[provis99]

1. Nice bill. Too bad it's just Kerry grandstanding.

This bill has zero percent chance of passing.

[ProSense]

2. "This bill has zero percent chance of passing."

You'd be surprised at how wrong some predictions are.

[karynnj]

4. Kerry is a senior member of the Finance committee

and this involves tax law - exactly what the Finance committee has jurisdiction over. The fact is that there has been movement against other ways people cheat taxes - such as putting it off shore. If there were a time where this has a chance, it may be now -- and there are few better positioned to raise it.

The fact is there is no need or justification to accuse him of grandstanding. He is not running for President and was just reelected with about two thirds of the vote in MA. He has passed very significant foreign policy legislation under his name, as well as many other measures.

Now, I expect to see you posting that Kucinich is "grandstanding" when he next pushes a truly impossible bill.

[Cha]

3. How is Kerry's support for this bill, "grandstanding"?

"(Washington) –Teamsters General President Jim Hoffa said the union strongly supports the Taxpayer Responsibility, Accountability and Consistency Act of 2009 filed today by Sen. John Kerry, D-Mass.

The bill would close a loophole that allows employers to avoid paying Social Security and Medicare taxes, withholding income taxes and contributing to workers’ compensation and unemployment insurance."

[karynnj]

5. I assume that he would be happy if a powerful Senator, like Al Franken supported this

or Kucinich in the House.

[Cha]

6. It shows me that like a lot of

posters around here..they don't know what they're talking about but never a miss a chance for a cheap shot.