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> It's also worth noting that many contractors live paycheck-to-paycheck, and even though they know they should be withholding 30% for tax, in practice they hav

> It's also worth noting that many contractors live paycheck-to-paycheck, and even though they know they should be withholding 30% for tax, in practice they have bills to pay first. I find it kind of dishonest to call this "living paycheck-to-paycheck" while ignoring tax with-holding. That is not "paycheck-to-paycheck" as much as "not being paid enough to live".

TechBro8615 6y ago
Totally agree, it’s not an ideal situation for the contractor or the government. The question is more whether the government (or your employer as a proxy) should play a protectionist role and handle the withholding for you, or if that should be your responsibility as a contractor. Speaking from personal experience, it’s much easier said than done. When your rent is due this month, taxes are due next year, and you’ve only got enough for rent... you aren’t gonna withhold 30%. It’s not because you don’t want to, but because you just don’t have the money. Call it poor financial management or whatever you want, but the reality is that lots of people get into this situation. Yet I doubt many of them would blame their clients (or Uber) for the problems. Most would say the government demands too much tax, or they can’t find enough work. Personally I would be in favor of a $30k annual basic income and eliminating all taxes on up to $100k in earnings. It will never happen, but it would be one of the best things to happen to society in a long time.
anchpop 6y ago
Uber drivers are not paid very well, so it wouldn’t surprise me if the money Uber is willing to pay you to drive for them isn’t enough to survive. However it would be a mistake to assume everyone who lives paycheck to paycheck is doing so because they’re being paid a sub-living wage. I’m in college and I know students who got into thousand of dollars of credit card debt so they could buy weed and designer clothes. If you give people money and say “by the way, we’re going to need some of this back eventually” (which is the tax situation with independent contractors), many people are just not capable of not spending all of it. (again, not saying this is the case for uber drivers. Although in the case of the uber drivers, keep in mind that there are two factors that determine their wage, what uber is willing to pay and the rate of taxation. Every uber driver could get something like a 30% raise if the government didn’t find it necessary to tax on third of the income of people who, in your words, don’t even make enough money to survive. I find it strange that blame only ever seems to go to uber in this situation)

TechBro8615 6y ago

Totally agree, it’s not an ideal situation for the contractor or the government. The question is more whether the government (or your employer as a proxy) should play a protectionist role and handle the withholding for you, or if that should be your responsibility as a contractor. Speaking from personal experience, it’s much easier said than done. When your rent is due this month, taxes are due next year, and you’ve only got enough for rent... you aren’t gonna withhold 30%. It’s not because you don’t want to, but because you just don’t have the money. Call it poor financial management or whatever you want, but the reality is that lots of people get into this situation. Yet I doubt many of them would blame their clients (or Uber) for the problems. Most would say the government demands too much tax, or they can’t find enough work. Personally I would be in favor of a $30k annual basic income and eliminating all taxes on up to $100k in earnings. It will never happen, but it would be one of the best things to happen to society in a long time.

anchpop 6y ago

Uber drivers are not paid very well, so it wouldn’t surprise me if the money Uber is willing to pay you to drive for them isn’t enough to survive. However it would be a mistake to assume everyone who lives paycheck to paycheck is doing so because they’re being paid a sub-living wage. I’m in college and I know students who got into thousand of dollars of credit card debt so they could buy weed and designer clothes. If you give people money and say “by the way, we’re going to need some of this back eventually” (which is the tax situation with independent contractors), many people are just not capable of not spending all of it. (again, not saying this is the case for uber drivers. Although in the case of the uber drivers, keep in mind that there are two factors that determine their wage, what uber is willing to pay and the rate of taxation. Every uber driver could get something like a 30% raise if the government didn’t find it necessary to tax on third of the income of people who, in your words, don’t even make enough money to survive. I find it strange that blame only ever seems to go to uber in this situation)