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Bleeding U.S Dry?


If you are a subcontractor you might have asked yourself a very common question: When the place where I work each day is paying for MY skills, how oh why is someone else able to take 30 to 75% of my wage?

No, I am not talking about the Government. While the 30% the 'Fed adds on top of that skim cripples us to taking home only about .25 - .40 on the dollar, every contractor who has had to scrimp and save to work hard while others bask in our earnings knows how much it hurts. How did this happen?

Who Ruined It for Us All?


Many years ago, a bunch of sub-contractors sued their contract employer (IBM) for benefits. To the horror of all genuine consultants, these secretaries actually won the lawsuit. From that dark day to this, in order to avoid those legal entanglements, every company in the U.S of A now uses "Shell Companies."

Shell Games


You know how the shell game works - Some 3rd party company contacts you. They tell you about a great contract job. You give them your resume, you win the interview, and you report to work. When the work is done, you are out of a job. In exchange for merely getting you an interview with a decision maker, you fork over many, many, dollars an hour to the middle man. How is that fair?

According to the U.S. Government, loosing full quartile percentages of our hourly wage *would* be fair if our employment continued after the sub-contract work was ended. Since it doesn't, the shell company should be either paying us as 1099 or W2S (statutory) Employee. That is what federal tax law says.

Taxing Terms


The difference between 1099, W2-S and W2 is a matter of ensuring that you can keep things like health insurance and other business deductions working the same way from contract to contract; Avoiding loss of benefits for pre-existing conditions.

When we work W2, United States Employment and Tax regulations assume that a shell company is taking care of us - after that single contract is over - as employees. For far too many of us independent contractors however, our shells just dump us back into the job search game again. A clear violation of the intent behind that W2 "employee" status, today most shell companies do not even reimburse employees for their travel and living expenses. It's a nightmare.

To The Rescue!


While we cannot deny that having head hunters can be valuable when we are out of work, we need to change the legal system so as to encourage our real employers to use us directly. To cut out the middle man.

In order to re-kindle the entrepreneurial American spirit, we need to ask our lawmakers to let contractors enjoy the fruit of our own labors. Moreover, rather than allowing a rare breed of idiotic consultants to terrorize our would-be employers with legal nightmares, we also need to ask the government to step in to protect companies from gratuitous would-be-employee lawsuits.

Let companies choose to hire U.S. without fear; Let good subcontractors once again reap the reward for our ability to keep our *real* employers happy. Most of all, we need to liberate our long-term earnings from a host of do-nothing middlemen. After all, is the company where we show up to work each day paying for our ability to get the job done, or the ability of someone else to find our resume on Dice.com or Monster.com?

Dumb & Dumberer-er


The mere fact that modern human resource professionals are actually forbidden by their legal departments from using Internet resources to locate their own employees underscores the foolishness of where our country has arrived today. In the spirit of competition; in anticipation of rekindling the genuine supply-and-demand mentality, if we want to keep America competitive in the world labor market, don't we need to cut out as many middlemen as possible?


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