“In early February I warned that that IRS penalties ‘can destroy a person’s life’ and said many ‘gig economy’ workers will not be able to afford this sudden tax bit” — Paul Ebeling.
Just when the economy is starting to really recover from the VirusCasedemic chaos and Draconian government lockdowns, the Democrats put $1-B tax bite on the American working class. The did it by slipping a new provision quietly slipped into sweeping $1.9-T ‘Porked‘ up legislation.
Hang on, it was 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-B annually, these lawmakers surely do not represent their constituents. Shame on them!
As thing were earnings data for gig economy workers need to be reported to the IRS only when it reaches $20,000. This means that small earners pursuing gig work to supplement their income were not hit by federal taxes.
But now, the Democrats’ provision eliminates the $20-K benchmark, and instead require all income above $600 to be reported to the IRS.
It boggles 1’s mind to think that after a year of depriving workers of their incomes and strangling the economy with government lockdowns, politicians would really add billions more in taxes onto working Americans’ shoulders.
It’s even more aggravating it this: when 1realizes that this is being done to pay for a $1.9-T “COVID” package where at least 15-% of the money goes to partisan Pork and just 1% goes to COVID vaccine distribution.
America’s elected officials have chosen to hammer the working class rather than eliminate waste and pork projects. This kind of political malpractice and fiscal irresponsibility will continue in Washington, DC until voters finally say enough is enough.
“Congress has to realize that the worst thing that they can do in a recovering economy is to increase taxes. This has been proven throughout history as the worst deterrent to economic recovery. Even the less experienced economist know this. However, regardless of this steadfast principle new ‘hidden taxes’ have emerged and guess what this is the one thing that neither they or the Media talk about.
“What bothers me as an economist is what did Congress do with the unfunded stimulus money from the first two stimulus bills, amounting to billions of unused dollars. More pork-barrel spending despite spending what has already been appropriated by Congress – interesting and wasteful! Or, is that their hidden treasury/reserve. I doubt it for I consider it more of their hidden pork! “
Is this the real beginning of new taxes and inflation on those who really need the help economically? Don’t been fooled. However, watch there will be more to come for this is just the tip of the iceberg!” says LTN contributing economist Bruce WD Barren.
The People must think 2022 and vote them out!
Have a healthy weekend, Keep the Faith!