Many of these impacted individuals are immigrants exercising their entrepreneurial spirit to build a better life for themselves and their families. Like all business owners, they invest not only their hopes and dreams and their hard work in their jobs — they also incur costs.
They travel long distances over bad roads. The high cost of gas is a burden and their vehicles incur heavy wear and tear. They also must invest in equipment and supplies.
All of these expenses are tax deductible for workers employed as independent contractors, but they lose access to this deduction when reclassified as an employee by AB 5. That’s why AB 5 is a huge tax increase on many Latino and immigrant entrepreneurs.
Click here to read the article in the Bakersfield Californian.