February 22, 2010

Independent Contractors and the (Deadly) Spirit of 1706

Joseph Stack set his house on fire and then piloted a small plane into a building housing the IRS in Austin, Texas. His daughter calls him a hero. Most of us would call him a terrorist. But whatever you call him, he was motivated in part by section 1706 of the 1986 Tax Reforms. Stack was a software engineer, and thus was directly impacted by the following language in the statute, which forbids the hiring of software engineers as independent contractors:

(d) EXCEPTION. - This section shall not apply in the case of an individual who pursuant to an arrangement between the taxpayer and another person, provides services for such other person as an engineer, designer, drafter, computer programmer, systems analyst, or other similarly skilled worker engaged in a similar line of work.

As a result of this unusual and highly specific language, programmers are almost always compelled to work as employees. Unlike the situation for most workers - who may or may not meet the criteria for independence - there is virtually no wriggle room for engineers.

Stack's self-identity as a tax protester goes deeper and taps a rich pathological vein. Envious of the tax exempt status granted to religious organizations, he tried to establish his own church, in his own home. Ten years and $40,000 in tax liabilities later, he gave it up. But he surely did not forget, nor did his daughter, Samantha Bell, who appears to be the last remaining worshipper at the defunct church.

Bell concedes that her father's actions were "inappropriate." Nonetheless, she considers him a hero for taking a stand for "justice." Some stand, some notion of justice! In addition to his own life, Stack's violent act took the life of IRS manager Vernon Hunter and had the potential for killing many more innocent people.

Ironically, the national consensus building around independent contractors is quite the opposite of what Stack envisioned. There is a concerted effort at the federal and state levels to view most working relationships as employer/employee. The burden of proof has shifted onto the companies (most notoriously, FedEx) that try to avoid taxes by calling people "independent contractors."

Joseph Stack might have thought himself a martyr for the cause of tax reform. He is surely something else: a symbol of the violence, fanaticism and rage that threatens to destabilize the most enduring democracy the world has ever known. Not exactly my idea of a hero.


| 1 Comment

1 Comment

Jon:

Stack is not a tragedy. He is a statistic. “A single death is a tragedy, a million deaths is a statistic.”*

He like tens of thousands of others needed help. They are mentally ill and a danger to themselves or others. Years ago we put people like him in institutions to try and help them and to protect the public from them. Now you can find the really disfunctional in the underbelly of every large city in the country. Many of the rest in the hoding tank at the county jail or the local term jail.

These are people with substance abuse problems, treatable mental illnesses and untreatable mental illnesses.

When we as a society will again take control of them and do our best to help them we can call ourselves compassionate. Until then we are selfish and uncaring.

The Supreme Court has forced this problem on us and it will take congress to undo it.

If they are willing to force us to pay for insurance or go to jail can they see the need to protect those that can't make rational decisions?

Regards,

Charles

* Joseph Stalin

Subscribe

Submit your email to be notified when this site is updated

Need help with your workers' comp program?

Monthly Archives

About this Entry

This page contains a single entry by Jon Coppelman published on February 22, 2010 11:06 AM.

Obscenity Laced Latte was the previous entry in this blog.

(Uncompensable) Nightmare at Work is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

OpenID accepted here Learn more about OpenID