The California Legislature is proposing that those making payments to Independent Contractors (and this includes Realtors) withhold 3% to help close the budget gap facing the financially troubled State.
Independent Contractors are being singled out to carry the burden of the State's financial difficulties. This is simply outrageous and must not be allowed to pass.
I was encouraged to see that C.A.R. (The California Association of Realtors) is actively opposing this move and recommending that all members contact their Democratic legislators to voice their opposition to this proposal.
In effect, Independent Contractors would be making loans of 3% of their earnings to the State and would only be refunded after filing their taxes in the next tax year.
In view of California's current financial predicament of needing to issue IOU's instead of checks as tax refunds, what guarantee would Independent Contractors have that they could cash the IOU's when eventually received?
Governor Schwarzenegger needs a clear message from all Realtors that this is simply unacceptable!
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