Quote:
Originally Posted by LUVMBDiesels
"For this reason Mr. Steuerle concludes that the Senate bill is not just a new health system but also "a new welfare and tax system" that will warp the labor market. Given the incentives of these two-tier subsidies, employers with large numbers of lower-wage workers like Wal-Mart may well convert them into "contractors" or do more outsourcing."
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That seems unlikely. I have worked as an independent contractor; there are some very specific IRS rules regarding the distinction between an employee and a contractor. Someone who works fixed hours and takes direction from a manager would have issues if they tried to classify themselves as a contractor. This is a pretty silly argument.
However, I would have a concern that some small businesses might see this as a disincentive to provide health insurance as part of a benefits package.