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rloginunix
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Re: Presidents  
« Reply #100 on: Apr 22nd, 2014, 10:43am »
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Not really sure why Wiki is a bit short on that issue. May be because it's such a niche: only IT and only in US.
 
The bottom line is this - it's all about money (what else is new?). Theoretically and technically - on paper - no one is stopping or preventing you from being independent - go right ahead. However, the magic words "trouble with IRS" is all it takes for people to not wanting to touch you with a 10-foot pole. IRS uses a list of 20 questions, which are nothing more than an ambiguous nonsense, to "determine" if you are a "real" independent contractor or not. And if you are then they come down hard on you and possibly the company that hired you. Guess what most companies prefer to do - either convert to a full time employee or walk.
 
This gave birth to a miniature industry known here as "consulting companies" or a man in the middle. The closest you can come to an IRS worry-free "independence" is by working as a "consultant" for such a company. Company A hires a "consulting company" B which, in turn, hires you, a "consultant" C. So technically, on paper, you are a full time employee of company B but you do the work for company A. You get very little tax breaks and you make less. Company B does pretty much nothing. It collects the pay for simply being a man in the middle.
 
The "rationale" behind all of this is the following. IRS reasons that it is much easier for them to collect taxes from full timers because there's not much room to cheat and it is much more difficult to collect taxes from independent contractors because they are given lot's of tax breaks and it's easier to cheat. However, independent people, by the virtue of making more, would've paid more taxes. So IRS chooses to collect less from those who cheat less instead of collecting more from those who may cheat more.
 
Not sure if it all makes sense. Politics. Waste of time.
 
Links go stale quickly so read this article quickly, may be it will clarify things somewhat.
 
If it's not there the string I used to search duckduckgo is "archives programmer independent Moynihan". Above article came up first. But I'm sure there are plenty of others.
 
 
P.S.
And, oh, yes. Almost forgot. The sole reason this "Section 1706" thingy came into place was because of IBM. Through some miraculously mysterious orchestration of events IBM "got" a tax break for their overseas operations. According to the law Congress must balance its budget. So they lost money on IBM and guess who is paying for it - you.
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towr
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Re: Presidents  
« Reply #101 on: Apr 22nd, 2014, 12:20pm »
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Sometimes the American dream is very very trippy indeed.
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JiNbOtAk
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Re: Presidents  
« Reply #102 on: Apr 28th, 2014, 7:30pm »
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on Apr 22nd, 2014, 12:20pm, towr wrote:
Sometimes the American dream is very very trippy indeed.

 
Ya think ?
 
Perhaps America is not so cool..
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