President Obama's proposed budget for Fiscal Year 2013 targets independent contractors and their clients, just like last year. Despite plenty of evidence that there is minimal to no "tax gap" between employees and independent contractors (less than 3%), the Administration supports continued efforts making it harder to operate as an independent contractor (including as a respondent receiving incentives to participate in marketing research) based on that groundless position. On Page 146, the Budget states:
Detect and Deter the Misclassification of Workers as Independent Contractors. When employees are misclassified as independent contractors, they are deprived of benefits and protections to which they are legally entitled, such as overtime and unemployment benefits. Misclassification also costs taxpayers money in lost funds for the Treasury and in the Social Security, Medicare, and Unemployment Insurance Trust Funds. The Budget includes $14 million to combat misclassification, including $10 million for grants to States to identify misclassification and recover unpaid taxes and $4 million for personnel at the Wage and Hour Division to investigate misclassification.