Insurance News


CA: Tax Laws May Inadvertently Spur Growth in Gig Economy

01.17.2018

By Liz Carey

San Diego, CA (WorkersCompensation.com) – New reforms to the tax laws may spur growth in the gig economy, some experts say.

Within the Tax Cuts and Jobs Act of 2017 was a provision which will allow sole proprietors to deduct 20 percent of their annual revenue from their taxable income.

Analysts say the tax savings could be up to $15,000 for working couples, enough to entice employees to become independent contractors.

“If you’re above the median, but not at the very, very top, one would think you’d be thinking it through,” David Kamin, tax law professor at New York University, told the New York Times.

The tax law could save employers money as well, as they shift employees to contractor status, allowing...

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