Independent Contractor Taxes Fuel our Economy
America’s 10.3 million independent contractors not only pay their fair share of state and federal taxes, they also pay taxes at higher levels than employers and employees.
Opponents of the independent contractor model don’t see it this way. They argue that independent contractors—as well as the companies and individuals that use their services—aren’t following tax laws, resulting in the loss of state and federal revenues. The facts tell a different story, however.
- 97% of all independent contractors accurately report their income to the government
- Independent contractors and their clients pay higher levels of taxes than they would under the traditional employer-employee model
- Independent contractors and other types of alternative workers pay taxes on the $626 billion they generate each year in personal income
The US Treasury Department even says that independent contractor taxes generate more revenue than if these workers were classified as traditional employees.
The tax revenue they provide is just one of the many benefits independent contractors are bringing to our economy. Read more about how independent contractors are helping the US economy grow.Download Fact Sheet