Source: National Urban League
Washington, D.C. - October 31, 2017 (The Ponder News) -- The United States Conference of Mayors, led by President and New Orleans Mayor Mitch Landrieu, and Marc Morial, President and CEO of the National Urban League, convened prominent civil rights leaders and a delegation of the nation’s mayors to discuss a national agenda to protect civil rights and ensure economic inclusion. The group convened at the historic Gracie Mansion with host NYC Mayor Bill de Blasio around a common purpose and shared vision for creating a better future for Americans hardest hit by inequality.
The group committed to developing both a slate of local policy initiatives they can work to implement themselves and recommendations for action at the federal level, emerging with a series of short- and long-term imperatives including fights to domestic budget cuts that will stagnate earnings, household incomes and economic growth across all communities. The nation’s mayors and civil rights leaders also stressed the importance of ensuring the 2020 Census count is fair and accurate and combatting bigotry and hate while addressing racially motivated violence.
“Whatever your political leanings, there’s no denying that there is a paralysis in Washington, D.C. We can disagree about the cause, and we can disagree about the remedy, but one thing we are not going to disagree about is the fact that we can’t wait for it to resolve itself,” said Marc Morial, President of the National Urban League. “We are moving forward, and this is where we begin.”
“Mayors are closest to communities and prioritize people, not politics,” said US Conference of Mayors President Mitch Landrieu, Mayor of New Orleans. “In the 1960s, when the Civil Rights movement was underway, people moved out of cities and into the suburbs, but now, the opposite is happening. As a result, mayors must be focused on policies and programs that lift up and benefit all of our communities and we don’t have time to wait on Washington. Here’s the reality, while we’d like to have the Federal government as a real partner, the greatness of America will stand in spite of what’s happening in Washington. If we build new partnerships and work together, we can change the way our country works through big issues like fairness, immigration reform, and economic security. We are confident that through the conversations we started today, we can find common ground, identify best practices and build a long and fruitful relationship that will significantly impact our country."
In attendance at the meeting were Mayor Christopher Cabaldon (West Sacramento, Calif.), Mayor Greg Fischer (Louisville, Ky.), Mayor Michael Hancock (Denver, Co.), Mayor Toni Harp (New Haven, Conn.), Mayor Catherine Pugh (Baltimore), Mayor Allison Silberberg (Alexandria, Va.), Mayor Paul Solberg (Madison, Wis.), and Mayor Richard Thomas (Mount Vernon, NY).
Leadership from the US Black Chambers, Inc., National Coalition for Black Civic Participation, National Newspapers Publishers Association, Lawyers’ Committee for Civil Rights Under Law, National Immigration Law Center, Anti-Defamation League, Enterprise Community Partners, US Hispanic Chamber of Commerce, National Action Network and Asian Americans Advancing Justice.
“We are here because we are fighting for the soul of this country and the future of this country, said Mayor Steve Benjamin of Columbia, SC and Vice President of the US Conference of Mayors. “Cities are where things are happening; 85% of Americans live in cities and 91% of the country’s GDP comes from cities. If we can come together, we can determine policies. It’s our job to tell the world we are greater than the sum of our parts.”
"Rarely have we seen a time where it was so important for mayors and civil rights leaders to come together," said Mayor Bill de Blasio. "Inequality is the crisis of our time. One underpinned by institutional and structural racism, and one that together we can work to solve. I am proud to be joined by a coalition of strong mayors and civil rights leaders who all know that cities are places of change. In a time of hostility towards cities from Washington, together we'll lead the way.”
Check out all the news and MORE at The Ponder News Web Site
The Unpopular Truth
Tuesday, October 31, 2017
Court Blocks Trans Military Ban in Yet Another Setback for the Discrimination Administration
Source: National Center for Transgender Equality
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Don't forget to visit The Ponder News HOME web site for more great news! Just click HERE!
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Washington, D.C. - October 31, 2017 (The Ponder News) -- In yet another blow to the Trump administration’s campaign of discrimination against transgender Americans, a federal court today temporarily blocked President Donald Trump’s dangerous and disrespectful Twitter-based ban on transgender military service members.
The ruling in Doe v. Trump concluded that the ban appeared to be based on little more than prejudice, saying that “there is absolutely no support for the claim that the ongoing service of transgender people would have any negative effective on the military at all,” and that “there is considerable evidence that it is the discharge and banning of such individuals that would have such effects.” The ruling also followed other recent court decisions in recognizing that government discrimination against transgender people is subject to heightened scrutiny by courts.
NCTE recently led a coalition of transgender organizations from around the country in filing an amicus brief in the case, arguing that the military ban is part of a wider pattern of discrimination against transgender people by the Trump administration.
NCTE Executive Director Mara Keisling issued the following statement:
Again and again, our courts have been forced to step in and halt this administration’s unconstitutional and dangerous bigotry. As today’s ruling makes clear, this ban was never about military readiness—just like President Trump’s Muslim bans have never been about national security. This ban is about discrimination, plain and simple. We are grateful that the plaintiffs and thousands of other troops will be able to continue serving without the threat of discharge while this case proceeds. Unfortunately, this ruling is not the end of the story, and these troops and their units will still face uncertainty unless Congress acts to end this ban for good.
Lawmakers in both major parties have denounced the ban, and bipartisan bills have been introduced in the House and Senate to end it. Though backed by both the Chair and Ranking Member of the Senate Armed Services Committee, Senate leaders blocked a vote to add a measure that would have ended the ban to the pending national defense authorization bill.
In related News:
In defeat for Trump, judge blocks transgender military ban
=====
Don't forget to visit The Ponder News HOME web site for more great news! Just click HERE!
=====
Washington, D.C. - October 31, 2017 (The Ponder News) -- In yet another blow to the Trump administration’s campaign of discrimination against transgender Americans, a federal court today temporarily blocked President Donald Trump’s dangerous and disrespectful Twitter-based ban on transgender military service members.
The ruling in Doe v. Trump concluded that the ban appeared to be based on little more than prejudice, saying that “there is absolutely no support for the claim that the ongoing service of transgender people would have any negative effective on the military at all,” and that “there is considerable evidence that it is the discharge and banning of such individuals that would have such effects.” The ruling also followed other recent court decisions in recognizing that government discrimination against transgender people is subject to heightened scrutiny by courts.
NCTE recently led a coalition of transgender organizations from around the country in filing an amicus brief in the case, arguing that the military ban is part of a wider pattern of discrimination against transgender people by the Trump administration.
NCTE Executive Director Mara Keisling issued the following statement:
Again and again, our courts have been forced to step in and halt this administration’s unconstitutional and dangerous bigotry. As today’s ruling makes clear, this ban was never about military readiness—just like President Trump’s Muslim bans have never been about national security. This ban is about discrimination, plain and simple. We are grateful that the plaintiffs and thousands of other troops will be able to continue serving without the threat of discharge while this case proceeds. Unfortunately, this ruling is not the end of the story, and these troops and their units will still face uncertainty unless Congress acts to end this ban for good.
Lawmakers in both major parties have denounced the ban, and bipartisan bills have been introduced in the House and Senate to end it. Though backed by both the Chair and Ranking Member of the Senate Armed Services Committee, Senate leaders blocked a vote to add a measure that would have ended the ban to the pending national defense authorization bill.
In related News:
In defeat for Trump, judge blocks transgender military ban
First-time Buyers Stifled by Low Supply, Affordability: 2017 Buyer and Seller Survey
Source: National Association of Realtors
Washington, D.C. - October 31, 2017 (The Ponder News) --Despite solid interest in buying a home – sparked by steady job gains, record low mortgage rates and higher rents – the severe drought in housing supply in much of the country over the past year accelerated price growth and kept many first-time buyers out of the market.
This is according to the National Association of Realtors®' 2017 Profile of Home Buyers and Sellers1, which also identified numerous current consumer and housing trends, including: mounting student debt balances and smaller down payments; increases in single female and trade-up buyers; the growing occurrence of buyers paying the list price or higher; and the fact that nearly all respondents use a real estate agent to buy or sell a home, which kept for-sale-by-owner transactions at an all-time low of 8 percent for the third straight year.
In this year's survey, the share of sales to first-time home buyers2 inched backward to 34 percent (35 percent in 2016), which is the fourth lowest share since 1981. In the 36-year history of NAR's survey, the long-term average of first-time buyer transactions is 39 percent.
“The dreams of many aspiring first-time buyers were unfortunately dimmed over the past year by persistent inventory shortages, which undercut their ability to become homeowners,” said Lawrence Yun, NAR chief economist. “With the lower end of the market seeing the worst of the supply crunch, house hunters faced mounting odds in finding their first home. Multiple offers were a common occurrence, investors paying in cash had the upper hand, and prices kept climbing, which yanked homeownership out of reach for countless would-be buyers.”
Added Yun, “Solid economic conditions and millennials in their prime buying years should be translating to a lot more sales to first-timers, but the unfortunate reality is that the nation's homeownership rate will remain suppressed until entry-level supply conditions increase enough to improve overall affordability.”
Other key findings and notable trends of buyers and sellers in this year's 144-page survey include:
Student debt balances continue to grow
Highlighting the additional challenges imposed on consumers trying to reach the market, 41 percent of first-time buyers indicated they have student debt (40 percent in 2016). The typical debt balance also increased ($29,000 from $26,000 in 2016), and over half owe at least $25,000. Additionally, of the 25 percent who said saving for a down payment was the most difficult task in the buying process, 55 percent said student debt delayed saving for their home purchase.
“NAR survey findings on student debt released earlier this fall revealed that an overwhelming majority of millennials with student debt believe it's delaying their ability to buy a home, and typically for seven years,” added Yun. “Even in markets with a plethora of job opportunities and higher pay, steep rents and home prices make it extremely difficult to put savings aside for a down payment.”
Single females make up larger share of sales
Solid job prospects, higher incomes and improving credit conditions translated to continued momentum in the growing share of single female buyers. At 18 percent (matches highest since 2011), single women were the second most common household buyer type behind married couples (65 percent). Furthermore, single women purchased slightly more expensive homes than single men despite earning less. The overall share of single male buyers (7 percent) remained below unmarried couples (8 percent) for the second straight year.
Down payment amounts decrease for first-timers, rise for repeat buyers
The ongoing climb in home prices pulled the typical down payment for first-timers to 5 percent this year (6 percent in 2016), which matches the lowest since 2013. Meanwhile, higher home values likely gave more sellers the wherewithal to use the cash from their recent sale to make a bigger down payment on their new home purchase (14 percent; 11 percent in 2016). Repeat buyers' sales proceeds from their previous purchase (55 percent) surpassed their own personal savings (50 percent) this year as a larger source of their down payment.
Personal savings ranked first for first-time buyers as the primary source of their down payment, followed by a gift from a friend or relative (25 percent; 24 percent in 2016). Over a half of first-timers said it took a year or more to save for a down payment, and 25 percent said saving was the most difficult task in the entire buying process.
Age of first-timers stays flat; climbs to new survey high for repeat buyers
For the second straight year, the median age of first-time buyers was 32 years old. First-time buyers had a higher household income ($75,000) than a year ago ($72,000) and purchased a slightly smaller home (1,640-square-feet; 1,650-square-feet in 2016) that was more expensive ($190,000; $182,500 in 2016). Fewer first-time buyers purchased a home in an urban area (17 percent; 20 percent in 2016).
The age of repeat buyers increased to an all-time survey high this year (54 years old; 52 years old in 2016) as older households, perhaps with plans to stay in the workforce longer but with an eye towards retirement, felt more comfortable about buying. Overall, repeat buyers had roughly the same household income than last year ($97,500; $98,000 in 2016) and purchased a 2,000-square-foot home (unchanged from last year) costing $266,500 ($250,000 in 2016).
Supply scarcity leads to increase in buyers paying list price or higher
Underscoring the supply and demand imbalances prevalent in many parts of the country, 42 percent of buyers paid the list price or higher for their home, which is up from a year ago (40 percent) and a new survey high since tracking began in 2007. Buyers in the West were the most likely (51 percent) to pay at or above list price.
“Many of those in the market to buy a home this year had little room to negotiate,” said Yun. “Listings in the affordable price range drew immediate interest, and the winning offer often times had to waive some contingencies or come in at or above asking price to close the deal.”
Buyers report less difficulty obtaining a mortgage
The improving financial health of borrowers and a slight ease in credit standards are leading to a smoother process in obtaining a mortgage. Fewer buyers (34 percent) compared to a year ago (37 percent) indicated that the mortgage application and approval process was somewhat or much more difficult than they expected.
Fifty-eight percent of buyers financed their purchase with a conventional mortgage, and 34 percent of first-time buyers took out a low-down payment Federal Housing Administration-backed mortgage, which is up from 33 percent last year but down from 46 percent five years ago.
Nearly all buyers choose a single-family home in a suburban location
A majority of buyers continue to choose a home in a suburb, small town or rural area (85 percent) as opposed to an urban one (13 percent; 14 percent in 2016). Eighty-three percent of buyers purchased a detached single-family home, which for the third straight year remains the highest share since 2004 (87 percent). Purchases of multi-family homes, including townhouses and condos, were at 11 percent.
Most buyers search for homes online…and use a real estate agent
This year's survey data continues to show that the internet (95 percent) and real estate agents (89 percent) remain the top two information sources used during buyers' home search. Overall, 87 percent of buyers ended up purchasing their home through a real estate agent (88 percent in 2016), and finding the right property to buy and help negotiating the terms of the sale were the top two things buyers wanted most from their agent. Even for those who found the home they purchased online, nearly all still closed on it with the help of an agent (88 percent).
“It's no surprise a majority of first-time buyers indicated that the top benefits received from their agent were help understanding the buying process (83 percent), pointing out unnoticed property features or faults (60 percent), and negotiating better sales terms (51 percent),” said President William E. Brown, a Realtor® from Alamo, California. “Realtors® over the past year have helped buyers – and especially first-timers – navigate extremely competitive market conditions where the need to be prepared and act quickly has been paramount to the success of purchasing a home.”
Homeowner tenure at all-time high; equity and share of repeat buyers climbs
The typical seller over the past year was 55 years old, had a higher household income ($103,300) than last year ($100,700) and was in the home for 10 years before selling – matching the all-time high set both in 2014 and a year ago. Prior to 2009, sellers consistently lived in their home for a median of six years before selling.
With home values steadily rising over the past several years, sellers realized a median equity gain of $47,500 ($43,100 in 2016) – a 26 percent increase (24 percent last year) over the original purchase price. Homes sold after 21 years of ownership had the largest equity gain (104 percent), while those who purchased six or seven years ago saw a larger return (27 percent) than those who purchased between eight and 15 years ago (14 percent to 18 percent).
The percent share of buyers trading up increased for the third straight year, rising to 52 percent from 46 percent in 2016. In 2014, 40 percent of buyers purchased a bigger home.
“The decline in first-time buyers and uptick in repeat buyers trading up to a larger home reflects the more favorable conditions for home shoppers at the upper end of the market, where listings are more plentiful and sales have been consistently higher over the past year,” said Yun.
Seller use of an agent remains at all-time high; FSBOs at record low
Sellers' use of a real estate agent this year remained at an all-time high of 89 percent. This in turn – for the third straight year – held for-sale-by-owner sales to their lowest share (8 percent) in the survey's history.
An overwhelming majority of sellers were satisfied with the selling process (88 percent), with most also indicating that they would definitely or probably use their agent again or recommend him or her to others (85 percent).
“Homeowners understand the value, and seek the expertise and guidance Realtors® bring to the table when it's time to sell their home,” said Brown. “Despite incredibly favorable market conditions for sellers – where finding interested buyers was not a problem – nearly all turned to a Realtor® to help assist them through the intricacies of listing their home on the market, accepting offers, negotiating the sales price and closing the deal.”
NAR mailed a 131-question survey in July 2017 using a random sample weighted to be representative of sales on a geographic basis to 145,800 recent home buyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,866 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 5.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.10 percent.
The recent home buyers had to have purchased a home between July 2016 and June 2017. All information is characteristic of the 12-month period ending in June 2017 with the exception of income data, which are for 2016.
The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
See more Great News at ThePonderNews.com
Washington, D.C. - October 31, 2017 (The Ponder News) --Despite solid interest in buying a home – sparked by steady job gains, record low mortgage rates and higher rents – the severe drought in housing supply in much of the country over the past year accelerated price growth and kept many first-time buyers out of the market.
This is according to the National Association of Realtors®' 2017 Profile of Home Buyers and Sellers1, which also identified numerous current consumer and housing trends, including: mounting student debt balances and smaller down payments; increases in single female and trade-up buyers; the growing occurrence of buyers paying the list price or higher; and the fact that nearly all respondents use a real estate agent to buy or sell a home, which kept for-sale-by-owner transactions at an all-time low of 8 percent for the third straight year.
In this year's survey, the share of sales to first-time home buyers2 inched backward to 34 percent (35 percent in 2016), which is the fourth lowest share since 1981. In the 36-year history of NAR's survey, the long-term average of first-time buyer transactions is 39 percent.
“The dreams of many aspiring first-time buyers were unfortunately dimmed over the past year by persistent inventory shortages, which undercut their ability to become homeowners,” said Lawrence Yun, NAR chief economist. “With the lower end of the market seeing the worst of the supply crunch, house hunters faced mounting odds in finding their first home. Multiple offers were a common occurrence, investors paying in cash had the upper hand, and prices kept climbing, which yanked homeownership out of reach for countless would-be buyers.”
Added Yun, “Solid economic conditions and millennials in their prime buying years should be translating to a lot more sales to first-timers, but the unfortunate reality is that the nation's homeownership rate will remain suppressed until entry-level supply conditions increase enough to improve overall affordability.”
Other key findings and notable trends of buyers and sellers in this year's 144-page survey include:
Student debt balances continue to grow
Highlighting the additional challenges imposed on consumers trying to reach the market, 41 percent of first-time buyers indicated they have student debt (40 percent in 2016). The typical debt balance also increased ($29,000 from $26,000 in 2016), and over half owe at least $25,000. Additionally, of the 25 percent who said saving for a down payment was the most difficult task in the buying process, 55 percent said student debt delayed saving for their home purchase.
“NAR survey findings on student debt released earlier this fall revealed that an overwhelming majority of millennials with student debt believe it's delaying their ability to buy a home, and typically for seven years,” added Yun. “Even in markets with a plethora of job opportunities and higher pay, steep rents and home prices make it extremely difficult to put savings aside for a down payment.”
Single females make up larger share of sales
Solid job prospects, higher incomes and improving credit conditions translated to continued momentum in the growing share of single female buyers. At 18 percent (matches highest since 2011), single women were the second most common household buyer type behind married couples (65 percent). Furthermore, single women purchased slightly more expensive homes than single men despite earning less. The overall share of single male buyers (7 percent) remained below unmarried couples (8 percent) for the second straight year.
Down payment amounts decrease for first-timers, rise for repeat buyers
The ongoing climb in home prices pulled the typical down payment for first-timers to 5 percent this year (6 percent in 2016), which matches the lowest since 2013. Meanwhile, higher home values likely gave more sellers the wherewithal to use the cash from their recent sale to make a bigger down payment on their new home purchase (14 percent; 11 percent in 2016). Repeat buyers' sales proceeds from their previous purchase (55 percent) surpassed their own personal savings (50 percent) this year as a larger source of their down payment.
Personal savings ranked first for first-time buyers as the primary source of their down payment, followed by a gift from a friend or relative (25 percent; 24 percent in 2016). Over a half of first-timers said it took a year or more to save for a down payment, and 25 percent said saving was the most difficult task in the entire buying process.
Age of first-timers stays flat; climbs to new survey high for repeat buyers
For the second straight year, the median age of first-time buyers was 32 years old. First-time buyers had a higher household income ($75,000) than a year ago ($72,000) and purchased a slightly smaller home (1,640-square-feet; 1,650-square-feet in 2016) that was more expensive ($190,000; $182,500 in 2016). Fewer first-time buyers purchased a home in an urban area (17 percent; 20 percent in 2016).
The age of repeat buyers increased to an all-time survey high this year (54 years old; 52 years old in 2016) as older households, perhaps with plans to stay in the workforce longer but with an eye towards retirement, felt more comfortable about buying. Overall, repeat buyers had roughly the same household income than last year ($97,500; $98,000 in 2016) and purchased a 2,000-square-foot home (unchanged from last year) costing $266,500 ($250,000 in 2016).
Supply scarcity leads to increase in buyers paying list price or higher
Underscoring the supply and demand imbalances prevalent in many parts of the country, 42 percent of buyers paid the list price or higher for their home, which is up from a year ago (40 percent) and a new survey high since tracking began in 2007. Buyers in the West were the most likely (51 percent) to pay at or above list price.
“Many of those in the market to buy a home this year had little room to negotiate,” said Yun. “Listings in the affordable price range drew immediate interest, and the winning offer often times had to waive some contingencies or come in at or above asking price to close the deal.”
Buyers report less difficulty obtaining a mortgage
The improving financial health of borrowers and a slight ease in credit standards are leading to a smoother process in obtaining a mortgage. Fewer buyers (34 percent) compared to a year ago (37 percent) indicated that the mortgage application and approval process was somewhat or much more difficult than they expected.
Fifty-eight percent of buyers financed their purchase with a conventional mortgage, and 34 percent of first-time buyers took out a low-down payment Federal Housing Administration-backed mortgage, which is up from 33 percent last year but down from 46 percent five years ago.
Nearly all buyers choose a single-family home in a suburban location
A majority of buyers continue to choose a home in a suburb, small town or rural area (85 percent) as opposed to an urban one (13 percent; 14 percent in 2016). Eighty-three percent of buyers purchased a detached single-family home, which for the third straight year remains the highest share since 2004 (87 percent). Purchases of multi-family homes, including townhouses and condos, were at 11 percent.
Most buyers search for homes online…and use a real estate agent
This year's survey data continues to show that the internet (95 percent) and real estate agents (89 percent) remain the top two information sources used during buyers' home search. Overall, 87 percent of buyers ended up purchasing their home through a real estate agent (88 percent in 2016), and finding the right property to buy and help negotiating the terms of the sale were the top two things buyers wanted most from their agent. Even for those who found the home they purchased online, nearly all still closed on it with the help of an agent (88 percent).
“It's no surprise a majority of first-time buyers indicated that the top benefits received from their agent were help understanding the buying process (83 percent), pointing out unnoticed property features or faults (60 percent), and negotiating better sales terms (51 percent),” said President William E. Brown, a Realtor® from Alamo, California. “Realtors® over the past year have helped buyers – and especially first-timers – navigate extremely competitive market conditions where the need to be prepared and act quickly has been paramount to the success of purchasing a home.”
Homeowner tenure at all-time high; equity and share of repeat buyers climbs
The typical seller over the past year was 55 years old, had a higher household income ($103,300) than last year ($100,700) and was in the home for 10 years before selling – matching the all-time high set both in 2014 and a year ago. Prior to 2009, sellers consistently lived in their home for a median of six years before selling.
With home values steadily rising over the past several years, sellers realized a median equity gain of $47,500 ($43,100 in 2016) – a 26 percent increase (24 percent last year) over the original purchase price. Homes sold after 21 years of ownership had the largest equity gain (104 percent), while those who purchased six or seven years ago saw a larger return (27 percent) than those who purchased between eight and 15 years ago (14 percent to 18 percent).
The percent share of buyers trading up increased for the third straight year, rising to 52 percent from 46 percent in 2016. In 2014, 40 percent of buyers purchased a bigger home.
“The decline in first-time buyers and uptick in repeat buyers trading up to a larger home reflects the more favorable conditions for home shoppers at the upper end of the market, where listings are more plentiful and sales have been consistently higher over the past year,” said Yun.
Seller use of an agent remains at all-time high; FSBOs at record low
Sellers' use of a real estate agent this year remained at an all-time high of 89 percent. This in turn – for the third straight year – held for-sale-by-owner sales to their lowest share (8 percent) in the survey's history.
An overwhelming majority of sellers were satisfied with the selling process (88 percent), with most also indicating that they would definitely or probably use their agent again or recommend him or her to others (85 percent).
“Homeowners understand the value, and seek the expertise and guidance Realtors® bring to the table when it's time to sell their home,” said Brown. “Despite incredibly favorable market conditions for sellers – where finding interested buyers was not a problem – nearly all turned to a Realtor® to help assist them through the intricacies of listing their home on the market, accepting offers, negotiating the sales price and closing the deal.”
NAR mailed a 131-question survey in July 2017 using a random sample weighted to be representative of sales on a geographic basis to 145,800 recent home buyers. Respondents had the option to fill out the survey via hard copy or online; the online survey was available in English and Spanish. A total of 7,866 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 5.6 percent. The sample at the 95 percent confidence level has a confidence interval of plus-or-minus 1.10 percent.
The recent home buyers had to have purchased a home between July 2016 and June 2017. All information is characteristic of the 12-month period ending in June 2017 with the exception of income data, which are for 2016.
The National Association of Realtors®, “The Voice for Real Estate,” is America's largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.
See more Great News at ThePonderNews.com
Trump Will Aid Persecuted Christians in Middle East
Source: Liberty Counsel
Washington, D.C. - October 30, 2017 (The Ponder News) -- Vice President Mike Pence announced a new policy at the In Defense of Christians annual summit in Washington, promising direct aid to persecuted Christians in the Middle East.
The Obama administration previously gave over a billion dollars in aid to the Middle East through the United Nations. However, little of that money made it to Christians and other vulnerable religious minority groups in that region. The Trump administration has now promised to bypass the United Nations and give the funds directly through the United States Agency for International Development to organizations on the ground to help victims of persecution and genocide.
Vice President Pence also noted the United Nations continues to deny funding requests in many instances to partner with faith-based groups with proven track records and deep roots in the Middle East. “My friends,” the Vice President said, “those days are over. This is the moment. Now is the time. And America will support these people in their hour of need. President Trump and I see these crimes for what they are: vile acts of persecution animated by hatred for Christians and the gospel of Christ. And so too does this president know who and what has perpetrated these crimes and he calls them by name: radical Islamic terrorism,” said Pence.
Through Liberty Counsel’s Liberty Relief International project, we strategically partner with ministries to provide humanitarian relief and spiritual support to persecuted Christians in the Middle East.
“Every day, Christians are persecuted and murdered for their faith in the ancient land where Christianity was first born,” said Mat Staver, Chairman of Liberty Counsel and Founder and President of Liberty Relief International. “We commend the Trump administration for recognizing this serious threat and helping these victims of persecution and genocide directly. The United Nations is a useless organization that refuses to help Christians. This announcement by the Trump administration is a welcome relief,” said Staver.
Liberty Counsel is an international litigation, education and policy organization. Liberty Counsel has a number of affiliated ministries, including Christians in Defense of Israel and Covenant Journey, a program that provides a life-changing experience in Israel for Christian college-age students who have leadership potential.
Read more great news at thepondernews.com
Washington, D.C. - October 30, 2017 (The Ponder News) -- Vice President Mike Pence announced a new policy at the In Defense of Christians annual summit in Washington, promising direct aid to persecuted Christians in the Middle East.
The Obama administration previously gave over a billion dollars in aid to the Middle East through the United Nations. However, little of that money made it to Christians and other vulnerable religious minority groups in that region. The Trump administration has now promised to bypass the United Nations and give the funds directly through the United States Agency for International Development to organizations on the ground to help victims of persecution and genocide.
Vice President Pence also noted the United Nations continues to deny funding requests in many instances to partner with faith-based groups with proven track records and deep roots in the Middle East. “My friends,” the Vice President said, “those days are over. This is the moment. Now is the time. And America will support these people in their hour of need. President Trump and I see these crimes for what they are: vile acts of persecution animated by hatred for Christians and the gospel of Christ. And so too does this president know who and what has perpetrated these crimes and he calls them by name: radical Islamic terrorism,” said Pence.
Through Liberty Counsel’s Liberty Relief International project, we strategically partner with ministries to provide humanitarian relief and spiritual support to persecuted Christians in the Middle East.
“Every day, Christians are persecuted and murdered for their faith in the ancient land where Christianity was first born,” said Mat Staver, Chairman of Liberty Counsel and Founder and President of Liberty Relief International. “We commend the Trump administration for recognizing this serious threat and helping these victims of persecution and genocide directly. The United Nations is a useless organization that refuses to help Christians. This announcement by the Trump administration is a welcome relief,” said Staver.
Liberty Counsel is an international litigation, education and policy organization. Liberty Counsel has a number of affiliated ministries, including Christians in Defense of Israel and Covenant Journey, a program that provides a life-changing experience in Israel for Christian college-age students who have leadership potential.
Read more great news at thepondernews.com
Monday, October 30, 2017
Rep. Watson Coleman Statement on Special Counsel Indictments of Former Trump Campaign Employees
Source: Bonnie Watson Coleman (D-NJ, 12th)
Washington, D.C. - October 30, 2017 (The Ponder News) -- Congresswoman Bonnie Watson Coleman (D-NJ) released the following statement today on federal indictments against former Trump campaign employees and associates:
“The indictment of Trump campaign chairman Paul Manafort and senior aide Rick Gates, along with reports of a guilty plea by Trump campaign foreign policy advisor George Papadopolous are the latest in troubling revelations surrounding this President.
The Special Counsel’s investigation is critical to uncovering the full extent of the Trump campaign’s ties to Russia and its interference in our democracy. I am also concerned by attempts by Trump allies to undermine and discredit Special Counsel Mueller and his investigation, as we have already witnessed attempts by President Trump to interfere in this investigation. Congress has a duty and responsibility to protect the integrity and independence of this process—our democracy depends on it.”
Washington, D.C. - October 30, 2017 (The Ponder News) -- Congresswoman Bonnie Watson Coleman (D-NJ) released the following statement today on federal indictments against former Trump campaign employees and associates:
“The indictment of Trump campaign chairman Paul Manafort and senior aide Rick Gates, along with reports of a guilty plea by Trump campaign foreign policy advisor George Papadopolous are the latest in troubling revelations surrounding this President.
The Special Counsel’s investigation is critical to uncovering the full extent of the Trump campaign’s ties to Russia and its interference in our democracy. I am also concerned by attempts by Trump allies to undermine and discredit Special Counsel Mueller and his investigation, as we have already witnessed attempts by President Trump to interfere in this investigation. Congress has a duty and responsibility to protect the integrity and independence of this process—our democracy depends on it.”
Retirement Plan Modernization Act Introduced in the House
Source: Tim Walberg (R-MI, 7th)
Washington, D.C. - October 30, 2017 (The Ponder News) -- U.S. Congressmen Tim Walberg (MI-07) and Gregorio Kilili Camacho Sablan (MP-00) introduced the Retirement Plan Modernization Act, bipartisan legislation to help make it easier for small businesses to offer retirement plans while keeping fees down for employees. H.R. 4158 helps small businesses better manage the administrative expenses of retirement plans by providing a long-overdue update to the automatic IRA rollover limit for former employees’ assets.
“Far too many families in Michigan are struggling to save for their retirement years,” said Congressman Walberg. “Often businesses will cite not having enough resources to administer a plan, as a key reason for not offering retirement benefits. This bipartisan bill is a commonsense step in our efforts to empower every American to retire with financial security and peace of mind. By reducing administrative costs, we can help more small businesses offer retirement benefits and ensure employees are not needlessly stuck paying higher fees.”
“Our legislation reduces administrative costs in retirement plans for active employees and updates a two decade old standard for automatic rollovers,” said Congressman Sablan. “Chairman Walberg and I continue to work together to find bipartisan agreement on practical fixes like this that benefit employers and employees throughout America.”
“The Chamber thanks Chairman Walberg and Ranking Member Sablan for introducing the bipartisan Retirement Plan Modernization Act. Increasing the cash-out limit is long overdue. It has not been touched in 19 years and is not subject to indexing, unlike many other limits in the retirement system. Updating both of these flaws will streamline retirement plan administration and reduce burdens for employers, especially small businesses,” said Randy Johnson, Senior Vice President of Labor, Immigration, and Employee Benefits at the U.S. Chamber of Commerce.
“Increasing the threshold for employers to cash-out retirement plan accounts brings us into the 21st century and reduces administrative expenses which in turn makes it easier for employers to maintain retirement plans and for employees to keep their retirement assets with them as they move jobs,” said Lynn Dudley, Senior Vice President, Global Retirement and Compensation Policy at the American Benefits Council.
Under current law, automatic IRA rollovers occur if a participant is no longer employed by the employer sponsoring the retirement plan and their balance is between $1,000 and $5,000. Congress has periodically adjusted the cash-out limit over the years to reflect increasing costs of administration; however, the last time it was updated was 1997. The Retirement Plan Modernization Act would raise the automatic IRA rollover limit, based on the rate of inflation, from $5,000 to $7,600 and allow for future increases to be indexed for inflation.
Congressman Walberg serves as Chairman of the Subcommittee on Health, Employment, Labor, and Pensions while Congressman Sablan serves as Ranking Member of the subcommittee. For more information on Walberg's work in Congress visit walberg.house.gov.
Washington, D.C. - October 30, 2017 (The Ponder News) -- U.S. Congressmen Tim Walberg (MI-07) and Gregorio Kilili Camacho Sablan (MP-00) introduced the Retirement Plan Modernization Act, bipartisan legislation to help make it easier for small businesses to offer retirement plans while keeping fees down for employees. H.R. 4158 helps small businesses better manage the administrative expenses of retirement plans by providing a long-overdue update to the automatic IRA rollover limit for former employees’ assets.
“Far too many families in Michigan are struggling to save for their retirement years,” said Congressman Walberg. “Often businesses will cite not having enough resources to administer a plan, as a key reason for not offering retirement benefits. This bipartisan bill is a commonsense step in our efforts to empower every American to retire with financial security and peace of mind. By reducing administrative costs, we can help more small businesses offer retirement benefits and ensure employees are not needlessly stuck paying higher fees.”
“Our legislation reduces administrative costs in retirement plans for active employees and updates a two decade old standard for automatic rollovers,” said Congressman Sablan. “Chairman Walberg and I continue to work together to find bipartisan agreement on practical fixes like this that benefit employers and employees throughout America.”
“The Chamber thanks Chairman Walberg and Ranking Member Sablan for introducing the bipartisan Retirement Plan Modernization Act. Increasing the cash-out limit is long overdue. It has not been touched in 19 years and is not subject to indexing, unlike many other limits in the retirement system. Updating both of these flaws will streamline retirement plan administration and reduce burdens for employers, especially small businesses,” said Randy Johnson, Senior Vice President of Labor, Immigration, and Employee Benefits at the U.S. Chamber of Commerce.
“Increasing the threshold for employers to cash-out retirement plan accounts brings us into the 21st century and reduces administrative expenses which in turn makes it easier for employers to maintain retirement plans and for employees to keep their retirement assets with them as they move jobs,” said Lynn Dudley, Senior Vice President, Global Retirement and Compensation Policy at the American Benefits Council.
Under current law, automatic IRA rollovers occur if a participant is no longer employed by the employer sponsoring the retirement plan and their balance is between $1,000 and $5,000. Congress has periodically adjusted the cash-out limit over the years to reflect increasing costs of administration; however, the last time it was updated was 1997. The Retirement Plan Modernization Act would raise the automatic IRA rollover limit, based on the rate of inflation, from $5,000 to $7,600 and allow for future increases to be indexed for inflation.
Congressman Walberg serves as Chairman of the Subcommittee on Health, Employment, Labor, and Pensions while Congressman Sablan serves as Ranking Member of the subcommittee. For more information on Walberg's work in Congress visit walberg.house.gov.
Driver Fatigue Prevention Act Introduced in the House
Source: Jackie Speier (D-CA, 14th)
Washington, D.C. - October 30, 2017 (The Ponder News) -- As cities across the country have seen a sharp increase in the number of tragic bus accidents, and driver related issues are a major contributor to these accidents, U.S. Representative Jackie Speier (D-CA) has introduced the Driver Fatigue Prevention Act to address the problems associated with driver fatigue. As it stands now, bus drivers are exempt from the Fair Labor Standards Act (FLSA) overtime provisions, which cover the majority of America workers. This legislation would extend these overtime provisions to intercity bus drivers. U.S. Senator Bob Casey (D-PA) introduced companion legislation in the Senate.
When bus drivers are overworked and fatigued, there is a greater likelihood of accidents, injuries and deaths,” Rep. Jackie Speier (D-CA, 14th) said. “We can’t afford it. We owe Americans safety on the roadways.”
“We know that driver fatigue is causing accidents and we have an obligation to do something about it,” Senator Casey said. “By ensuring that employers must compensate their bus drivers for every hour of work completed, they are less likely to overwork their employees. If my colleagues are serious about making our roads safer, than we must pass this legislation.”
Among other benefits, the Driver Fatigue Prevention Act would help to ensure that drivers are compensated for the full amount of work that they complete, thus making employers less like to overwork their drivers.
Washington, D.C. - October 30, 2017 (The Ponder News) -- As cities across the country have seen a sharp increase in the number of tragic bus accidents, and driver related issues are a major contributor to these accidents, U.S. Representative Jackie Speier (D-CA) has introduced the Driver Fatigue Prevention Act to address the problems associated with driver fatigue. As it stands now, bus drivers are exempt from the Fair Labor Standards Act (FLSA) overtime provisions, which cover the majority of America workers. This legislation would extend these overtime provisions to intercity bus drivers. U.S. Senator Bob Casey (D-PA) introduced companion legislation in the Senate.
When bus drivers are overworked and fatigued, there is a greater likelihood of accidents, injuries and deaths,” Rep. Jackie Speier (D-CA, 14th) said. “We can’t afford it. We owe Americans safety on the roadways.”
“We know that driver fatigue is causing accidents and we have an obligation to do something about it,” Senator Casey said. “By ensuring that employers must compensate their bus drivers for every hour of work completed, they are less likely to overwork their employees. If my colleagues are serious about making our roads safer, than we must pass this legislation.”
Among other benefits, the Driver Fatigue Prevention Act would help to ensure that drivers are compensated for the full amount of work that they complete, thus making employers less like to overwork their drivers.
Surviving Spouses Income Security Act, H.R. 4106, Introduced in the House
Source: Jacky Rosen (D-NV, 3rd)
Washington, D.C. - October 30, 2017 (The Ponder News) -- Congresswoman Jacky Rosen (NV-03) released the following statement after she helped introduce Congresswoman Carol Shea-Porter’s (NH-01) Surviving Spouses Income Security Act, H.R. 4106, designed to improve the formula used to allocate benefits and compensation to Gold Star Families -- the family members of deceased service members:
“When a service member is laid to rest for their sacrifice to our country, the very least we can do as a nation is to ensure the financial stability of their loved ones,” said Rosen. “By increasing payments to Gold Star Families and securing their access to benefits, we can honor and comfort the surviving spouses and children of fallen service members. I am proud to work with Congresswoman Shea-Porter on this legislation and will continue to honor service members and their families and work to help them obtain their much-deserved benefits and resources.”
BACKGROUND: Introduced earlier this week, H.R. 4106 would improve “dependency and indemnity compensation” (DIC), which is a payment made to the surviving dependents of either a deceased active duty service member, retired military member who has died from a service-connected cause, or a veteran who was rated 100% disabled for a period of ten years prior to a death, not caused by their service-connected condition. The Surviving Spouses Income Security Act creates a new Dependents and Survivors Income Security (DSIS) benefit, equal to 55% of the rate of compensation for a veteran with a 100% service-connected disability. Currently, DIC to military families is not equivalent to that paid to surviving family members of civilian federal employees who are killed while performing their duties, and this bill would more closely align these benefits.
According to the U.S. Department of Veteran Affairs, 3,662 Nevadans are beneficiaries of the VA Dependency and Indemnity Compensation Benefit, which is paid to Gold Star Families, surviving spouses and family members of veterans who pass away as a result of their service-connected disability, and survivors of veterans who were 100% service-connected disabled for at least 10 years before their death. The benefit is often much less than VA disability compensation paid prior to the veteran’s death.
Washington, D.C. - October 30, 2017 (The Ponder News) -- Congresswoman Jacky Rosen (NV-03) released the following statement after she helped introduce Congresswoman Carol Shea-Porter’s (NH-01) Surviving Spouses Income Security Act, H.R. 4106, designed to improve the formula used to allocate benefits and compensation to Gold Star Families -- the family members of deceased service members:
“When a service member is laid to rest for their sacrifice to our country, the very least we can do as a nation is to ensure the financial stability of their loved ones,” said Rosen. “By increasing payments to Gold Star Families and securing their access to benefits, we can honor and comfort the surviving spouses and children of fallen service members. I am proud to work with Congresswoman Shea-Porter on this legislation and will continue to honor service members and their families and work to help them obtain their much-deserved benefits and resources.”
BACKGROUND: Introduced earlier this week, H.R. 4106 would improve “dependency and indemnity compensation” (DIC), which is a payment made to the surviving dependents of either a deceased active duty service member, retired military member who has died from a service-connected cause, or a veteran who was rated 100% disabled for a period of ten years prior to a death, not caused by their service-connected condition. The Surviving Spouses Income Security Act creates a new Dependents and Survivors Income Security (DSIS) benefit, equal to 55% of the rate of compensation for a veteran with a 100% service-connected disability. Currently, DIC to military families is not equivalent to that paid to surviving family members of civilian federal employees who are killed while performing their duties, and this bill would more closely align these benefits.
According to the U.S. Department of Veteran Affairs, 3,662 Nevadans are beneficiaries of the VA Dependency and Indemnity Compensation Benefit, which is paid to Gold Star Families, surviving spouses and family members of veterans who pass away as a result of their service-connected disability, and survivors of veterans who were 100% service-connected disabled for at least 10 years before their death. The benefit is often much less than VA disability compensation paid prior to the veteran’s death.
Rohrabacher Applauds House Probe into Clinton-Russia Collusion
Source: Dana Rohrabacher (R-CA, 48th)
Washington, D.C. - October 30, 2017 (The Ponder News) -- Concerning moves this week by the Republican leadership to conduct joint investigations by the House Intelligence Committee and the Government Oversight and Reform Subcommittee on National Security, Rep. Dana Rohrabacher, chairman of the House Foreign Affairs Subcommittee on Europe, Eurasia, and Emerging Threats, released the following statement:
“Emerging from the aftermath of last year’s presidential election is evidence of collusion and a cauldron of corruption that appears to be one of the most significant national security scandals in my lifetime. The Uranium One sale raises serious questions involving the Russians and payments made to the Clinton Foundation – as well as a half-million-dollar speaker fee paid directly to Bill Clinton. If those foundation donations – more than $145 million – are connected to the Uranium transaction, then the American people need to know the facts. For longer than a year, the media have been pushing the Trump–Russia narrative down America’s throat. This could well turn out to be one of the biggest frauds in our country’s history, made even worse by substantiation of the Clintons’ collusion with Russia.
“I applaud the Republican House leadership, which is now stepping up to uncover and disclose this corrupt and fraudulent activity by the Democratic Party. Those crimes apparently were committed as the Democrats and their leftwing allies conducted a bogus media campaign against the Trump presidency. I am confident the leadership – including Rep. Devin Nunes, R-CA, Rep. Ron DeSantis, R-FLA, and Rep. Peter King, R-NY – will shed investigative light on the hypocrisy and fraud foisted on the American people by last year’s Democratic presidential campaign of Hillary Clinton.”
Washington, D.C. - October 30, 2017 (The Ponder News) -- Concerning moves this week by the Republican leadership to conduct joint investigations by the House Intelligence Committee and the Government Oversight and Reform Subcommittee on National Security, Rep. Dana Rohrabacher, chairman of the House Foreign Affairs Subcommittee on Europe, Eurasia, and Emerging Threats, released the following statement:
“Emerging from the aftermath of last year’s presidential election is evidence of collusion and a cauldron of corruption that appears to be one of the most significant national security scandals in my lifetime. The Uranium One sale raises serious questions involving the Russians and payments made to the Clinton Foundation – as well as a half-million-dollar speaker fee paid directly to Bill Clinton. If those foundation donations – more than $145 million – are connected to the Uranium transaction, then the American people need to know the facts. For longer than a year, the media have been pushing the Trump–Russia narrative down America’s throat. This could well turn out to be one of the biggest frauds in our country’s history, made even worse by substantiation of the Clintons’ collusion with Russia.
“I applaud the Republican House leadership, which is now stepping up to uncover and disclose this corrupt and fraudulent activity by the Democratic Party. Those crimes apparently were committed as the Democrats and their leftwing allies conducted a bogus media campaign against the Trump presidency. I am confident the leadership – including Rep. Devin Nunes, R-CA, Rep. Ron DeSantis, R-FLA, and Rep. Peter King, R-NY – will shed investigative light on the hypocrisy and fraud foisted on the American people by last year’s Democratic presidential campaign of Hillary Clinton.”
New Economy Works to Guarantee Independence and Growth (NEW GIG) Act Introduced in the House
Source: Tom Rice (R-SC, 7th)
Washington, D.C. - October 30, 2017 (The Ponder News) -- Congressman Tom Rice (R-S.C.) today introduced the New Economy Works to Guarantee Independence and Growth (NEW GIG) Act, legislation that clarifies provisions in the tax code that classify workers as either independent contractors or employees. Right now, freelance-style workers are often left struggling to understand the complicated and subjective tax code as it applies to their style of work. The NEW GIG Act creates a safe harbor that allows workers to comply with a simple set of objective factors to be classified as an independent contractor, creating simplicity and continuity instead of complex rules. The bill also strengthens tax reporting requirements for independent contractors in order to reduce confusion and promote greater compliance. Senator John Thune (R-S.D.) introduced companion legislation in the Senate earlier this year.
“America is the land of opportunity and ‘gig-economy’ jobs are helping expand that opportunity for people in South Carolina and all across the country,” said Congressman Rice. “Now people can go on their phones and be hired for home maintenance repairs or ride-sharing services almost instantly. The NEW GIG Act serves to bolster this booming sector of our economy while reducing the complexity in worker classification that exists today. I look forward to working with Senator Thune and the stakeholders in the on-demand community to further improve this area of the tax code and provide these workers certainty.”
“Today’s fast-growing ‘gig economy’ has made it easier for people to offer unique services, like home repair and cleaning, child care, food delivery, or ride sharing, through easy-to-use mobile applications that can be opened with a simple swipe of a finger,” said Senator Thune. “While these gig economy companies have created thousands of new jobs, they’ve also faced new challenges when it comes to how the service providers are classified by the IRS. I’m pleased to have a strong partner in Rep. Rice to help move this legislation that would provide clear rules so on-demand workers can work as independent contractors with the peace of mind that their tax status will be respected by the IRS.”
The bill would create a safe harbor based on objective tests, which if satisfied, would ensure that the service provider (worker) would be treated as an independent contractor, not an employee, and the service recipient (customer) would not be treated as the employer. In the context of the gig economy where an internet platform or app facilitates the transactions and payments, that third party would also not be treated as the employer.
Objective Tests:
The safe harbor focuses on three areas that are intended to demonstrate the independence of the service provider from the service recipient and/or the payer based on objective criteria, rather than a subjective facts-and-circumstances analysis:
(1) The relationship between the parties (e.g., job-by-job arrangement, the service provider incurs his own business expenses, the service provider is not tied to a single service recipient);
(2) The location of the services or the means by which the services are provided (e.g., the service provider has his own place of business, does not work exclusively at the service provider’s location, provides his own tools and supplies); and
(3) A written contract (e.g., stating the independent-contractor relationship, acknowledging that the service provider is responsible for his own taxes, providing the service recipient’s reporting and withholding obligations).
Safe Harbor Only
Given that the safe harbor is based on objective criteria, it may not apply in every case. However, the bill would preserve the common law rules for worker classification as well as the special rules under current law that permit real estate agents and direct sellers to qualify as independent contractors.
Reporting Rules
The amount paid to the service recipient under the safe-harbor would be reported to the IRS. For gig economy arrangements – three party transactions – the payer would report payments over $1,000 on IRS Form 1099-K (with the option of reporting amounts below that level). For traditional independent-contractor relationships, the service recipient would follow the existing reporting rules and file a Form 1099-MISC showing the amount paid to the service provider. The bill would update the reporting rules to require reporting of payments totaling $1,000 or more in a year, up from $600 under current law. To qualify for safe harbor, the bill would require the service recipient (or payer in the gig-economy model) to withhold a limited amount of the payments made, which would be deposited with the IRS and treated like an estimated tax payment by the service provider.
Retroactive Reclassification
The bill addresses cases where service providers or service recipients (or payers) mistakenly believe they qualify for the safe harbor but fail to meet one or more of the requirements. As long as there is a good faith effort to comply with the requirements of the safe harbor, the bill would provide relief and only allow the IRS to reclassify the service provider as an employee and the service recipient (or payer) as the employer on a prospective basis.
Tax Court Jurisdiction
Under current law, only the service recipient may petition the tax court regarding misclassification of workers. The bill would expand current law to allow the service provider to bring such a case as well.
Washington, D.C. - October 30, 2017 (The Ponder News) -- Congressman Tom Rice (R-S.C.) today introduced the New Economy Works to Guarantee Independence and Growth (NEW GIG) Act, legislation that clarifies provisions in the tax code that classify workers as either independent contractors or employees. Right now, freelance-style workers are often left struggling to understand the complicated and subjective tax code as it applies to their style of work. The NEW GIG Act creates a safe harbor that allows workers to comply with a simple set of objective factors to be classified as an independent contractor, creating simplicity and continuity instead of complex rules. The bill also strengthens tax reporting requirements for independent contractors in order to reduce confusion and promote greater compliance. Senator John Thune (R-S.D.) introduced companion legislation in the Senate earlier this year.
“America is the land of opportunity and ‘gig-economy’ jobs are helping expand that opportunity for people in South Carolina and all across the country,” said Congressman Rice. “Now people can go on their phones and be hired for home maintenance repairs or ride-sharing services almost instantly. The NEW GIG Act serves to bolster this booming sector of our economy while reducing the complexity in worker classification that exists today. I look forward to working with Senator Thune and the stakeholders in the on-demand community to further improve this area of the tax code and provide these workers certainty.”
“Today’s fast-growing ‘gig economy’ has made it easier for people to offer unique services, like home repair and cleaning, child care, food delivery, or ride sharing, through easy-to-use mobile applications that can be opened with a simple swipe of a finger,” said Senator Thune. “While these gig economy companies have created thousands of new jobs, they’ve also faced new challenges when it comes to how the service providers are classified by the IRS. I’m pleased to have a strong partner in Rep. Rice to help move this legislation that would provide clear rules so on-demand workers can work as independent contractors with the peace of mind that their tax status will be respected by the IRS.”
The bill would create a safe harbor based on objective tests, which if satisfied, would ensure that the service provider (worker) would be treated as an independent contractor, not an employee, and the service recipient (customer) would not be treated as the employer. In the context of the gig economy where an internet platform or app facilitates the transactions and payments, that third party would also not be treated as the employer.
Objective Tests:
The safe harbor focuses on three areas that are intended to demonstrate the independence of the service provider from the service recipient and/or the payer based on objective criteria, rather than a subjective facts-and-circumstances analysis:
(1) The relationship between the parties (e.g., job-by-job arrangement, the service provider incurs his own business expenses, the service provider is not tied to a single service recipient);
(2) The location of the services or the means by which the services are provided (e.g., the service provider has his own place of business, does not work exclusively at the service provider’s location, provides his own tools and supplies); and
(3) A written contract (e.g., stating the independent-contractor relationship, acknowledging that the service provider is responsible for his own taxes, providing the service recipient’s reporting and withholding obligations).
Safe Harbor Only
Given that the safe harbor is based on objective criteria, it may not apply in every case. However, the bill would preserve the common law rules for worker classification as well as the special rules under current law that permit real estate agents and direct sellers to qualify as independent contractors.
Reporting Rules
The amount paid to the service recipient under the safe-harbor would be reported to the IRS. For gig economy arrangements – three party transactions – the payer would report payments over $1,000 on IRS Form 1099-K (with the option of reporting amounts below that level). For traditional independent-contractor relationships, the service recipient would follow the existing reporting rules and file a Form 1099-MISC showing the amount paid to the service provider. The bill would update the reporting rules to require reporting of payments totaling $1,000 or more in a year, up from $600 under current law. To qualify for safe harbor, the bill would require the service recipient (or payer in the gig-economy model) to withhold a limited amount of the payments made, which would be deposited with the IRS and treated like an estimated tax payment by the service provider.
Retroactive Reclassification
The bill addresses cases where service providers or service recipients (or payers) mistakenly believe they qualify for the safe harbor but fail to meet one or more of the requirements. As long as there is a good faith effort to comply with the requirements of the safe harbor, the bill would provide relief and only allow the IRS to reclassify the service provider as an employee and the service recipient (or payer) as the employer on a prospective basis.
Tax Court Jurisdiction
Under current law, only the service recipient may petition the tax court regarding misclassification of workers. The bill would expand current law to allow the service provider to bring such a case as well.
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