The legislation was introduced by Thune and Rep. Tom Rice (R-SC) in July.
“My legislation would provide clear rules so these freelance-style workers can work as independent contractors with the peace of mind that their tax status will be respected by the IRS,” Thune said of the bill then.
Conservatives say adding the bill would simplify and update the tax code to bring in order to bring it in-line with the modern economy – making it easier for independent contractors who work on these “on-demand economy” platforms to file their taxes.
“The new and growing gig economy is an exciting new feature of modern life, but it has unfortunately run up against numerous challenges posed by outdated tax law. Tax reforms that account for the gig economy would allow for workers to engage in mircro-entrepreneurship without worrying about running afoul of the IRS,” says Matt Feeney from the Cato Institute.
Jenny Beth Martin from Tea Party Patriots Citizens Fund agrees.
“Tax laws not only need to be reformed but they need to be updated to reflect today’s economy,” she said. “More and more people are working multiple jobs as contractors because it fits their schedule, lifestyle, and financial needs. They can spend their mornings doing graphics or website design while driving for Uber or Lyft the rest of the day, and perhaps even do a third job in the evening. The reform proposed by Senator Thune and Congressman Rice would simplify the tax code for Gig Economy companies and their independent contractors, and therefore incentivize more people to participate and succeed in these new jobs. There’s no cost to taxpayers and it’s true reform.”
The House tax reform bill was slammed last week by Sen. Marco Rubio and others, who feel like the bill doesn’t do enough to help working class families.