It includes an incentive for workers to take contractor jobs. The GOP tax law passed last year could hasten a workplace trend away from direct employment and toward the use of independent contractors, an arrangement that may save businesses money but would shortchange everyday workers in unseen ways. But now independent contractors ― who are technically business owners ― can deduct 20 percent of qualifying pass-through income, thereby cutting their effective tax rate. Those savings could make it easier for companies to sell workers on independent contractor arrangements, a possibility that concerns labor and tax experts. The paper did not estimate how many workers might move from being employees to contractors, since the tax law is still young and any projection would be speculation.

Source: Huffington Post December 19, 2018 16:52 UTC