> Don’t 1099 workers have preferential tax treatments?
It's complicated but the short answer is no. A 1099 contractor can write off a bunch of expenses. But importantly an employer can also write off a bunch of expenses. (like your health insurance) On top of that an employer pays half the FICA withholding where a self employed person pays the whole thing. And also you don't get unemployment as a contractor. And you don't get paid vacation either.
> I feel like we need a new system where one can be an entrepreneur and still be able to afford healthcare.
A saw someone claim about 10 years ago that there are more small businesses and self employed people in Europe than the US and government funded health insurance is likely the reason.
A self-employed person can also put more money away towards retirement and reduce taxable income this way. A W2 person cannot do as much.
I would love to see data regarding the small business rate in Europe. As an American, I’m really missing out on what other developed societies are doing.
It's complicated but the short answer is no. A 1099 contractor can write off a bunch of expenses. But importantly an employer can also write off a bunch of expenses. (like your health insurance) On top of that an employer pays half the FICA withholding where a self employed person pays the whole thing. And also you don't get unemployment as a contractor. And you don't get paid vacation either.
> I feel like we need a new system where one can be an entrepreneur and still be able to afford healthcare.
A saw someone claim about 10 years ago that there are more small businesses and self employed people in Europe than the US and government funded health insurance is likely the reason.