[Congressional Record Volume 143, Number 101 (Wednesday, July 16, 1997)]
[House]
[Page H5308]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INDEPENDENT CONTRACTOR PROVISION IN TAX BILL WILL HURT MIDDLE-INCOME 
                                WORKERS

  (Ms. SLAUGHTER asked and was given permission to address the House 
for 1 minute and to revise and extend her remarks.)
  Ms. SLAUGHTER. Mr. Speaker, there is a real snake in the woodpile in 
this tax bill that nobody is talking about. There is a little provision 
in there that says an employer can declare an employee an independent 
contractor. That $500 tax credit per child will not mean a heck of a 
lot to a taxpayer if suddenly they find out they are responsible for 
all their own health insurance, paying their own FICA, and paying their 
payroll tax.
  This is something that will also cost the American taxpayer an 
estimated $2.2 billion over the next 10 years. Let me quote Secretary 
of the Treasury, Robert Rubin, and what he has to say about this one 
provision.
  ``The provisions for independent contractor status would permit 
employers to avoid essential worker protections.'' Think about this, 
constituents. I want everyone to know about this one. At a time when we 
are trying to expand health and pension coverage, this proposal could 
lead to widespread shifting of employees to independent contractor 
status.
  No longer an employee, but on their own. They would take away the 
protections such as pension and health coverage and, consequently, wage 
and hour protections, unemployment insurance benefits, and compensation 
for work related injuries. Wake up America, it is coming.

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