What will happen in 2011?

It seems like there are about 3 different issues being intertwined here. First, the Mayan Calendar predicts the end of the world in 2012. So live it up for the next year.

Second--there is talk of a pust to simplify the tax code. The jist of the idea is to lower the rate you pay, but get rid of the deductions. Could put Roadmedic out of one of his jobs.

Third--there is a push from the current administration to reclassify independent contractors as employees.

My prediction--you will see trucking companies going out of business and being bought at firesale prices by larger companies. The economy is going to slowly take off. Many firms still don't have pricing where they need it to make money. Fuel costs are going up. Many companies will sell for peanuts instead of filing Chapter 7. Others will just close the doors. Make sure you know what is going on with your employer and customers that owe you money. It will be a good year for flatbedders. Supply and demand are in our favor if the economy picks up at all. I am not quite as upbeat about the van business.

 

Please take the tax cuts. The calls have started already. Will not break my heart.


But the one you call third. This has been an issue that has been addressed over many industries in the past and it just so happens trucking is up.



The true way to reduce the tax bite is a National Sales tax.

 

Who cares if the tax code changes?

That's why you secure the services of a CPA ALL YEAR LONG!!!!



If one is incorporated....They are foolish to prepare their own taxes.....

What was that saying?..... "A person who doctors themself has a fool for a patient"......

 

As an independent, do you think you should be classified as an employee?

 

Not sure where you are going with this.

The items I have reviewed deal with the mis classification of the leased drivers who are leasing equipment from the company they drive for. In other words, they cannot take the equipment and go elsewhere.


I own my truck. I can go anywhere.

 

Maybe so.

But why pay someone to do a return when you are the best.

 

I actually think the lease from the company deal deserves closer scrutiny. I was under the impression that all independent contractors in trucking were under review. Are you leased to one company or do you have your own authority?

 

I am currently leased to a company. I had my own authority back in 2006 and let it go.

 

In your opinion, there is no danger to that type of arrangement being reclassified?

 

It is an unknown factor.


I look for them to closely monitor this over a few years. The IRS is actually losing money from the program.

If they were employees, then the government would be receiving withholding on them. Overall, I think they will eventually be shut down.