Trump’s Tax Plan Seen Turning Employees Into Contractors
- Clinton taxes the 1 percent; Trump benefits them, studies find
- Trump spokesman decries ‘fraudulent analysis’ as waste of time
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Donald Trump’s proposal to offer all businesses a flat 15 percent income-tax rate would prompt workers to try to cut their tax bills by turning themselves into “self-employed” contractors -- without leaving their current employer -- according to a tax-policy group’s report.
By offering such an advantageous tax rate, the proposal “would create a strong incentive” for wage earners to form their own businesses and provide “labor services to their current employer,” said the report by the Washington-based Tax Policy Center. If half of those who earn more than $100,000 a year eventually made that change, federal revenue would drop by $894 billion over a decade, the center found.