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Uber/Lyft Looking to Shut Down in California Tomorrow

24

Comments

  • Goduckies
    Goduckies Member Posts: 8,082 Standard Supporter
    edited August 2020
    The judge put a stay in until October
  • NorthwestFresh
    NorthwestFresh Member Posts: 7,972
    Goduckies said:

    The judge put a stay in until October

    Surprised the stay wasn’t extended until November 4th. I’m sure it will be soon.
  • WestlinnDuck
    WestlinnDuck Member Posts: 17,905 Standard Supporter
    The drivers want to be independent contractors because they can deduct their expenses including the cost of the car. If you are an employee, then you get no business deductions and are taxed on your wages. No car expenses.
  • pawz
    pawz Member, Moderator, Swaye's Wigwam Posts: 22,515 Founders Club

    The drivers want to be independent contractors because they can deduct their expenses including the cost of the car. If you are an employee, then you get no business deductions and are taxed on your wages. No car expenses.

    Not totally correct. Uber/Lyft would have to reimburse drivers for the cost of using driver's vehicle. 58c per mile adds up, to be honest..
  • WestlinnDuck
    WestlinnDuck Member Posts: 17,905 Standard Supporter
    Not that I don't believe you, just trying to learn more about this.
  • NorthwestFresh
    NorthwestFresh Member Posts: 7,972
    edited August 2020

    The drivers want to be independent contractors because they can deduct their expenses including the cost of the car. If you are an employee, then you get no business deductions and are taxed on your wages. No car expenses.

    When I’ve taken Uber or Lyft, the driver is often working for both services on a 1099 contract. How does that continue when both companies have to claim drivers as employees? I don’t see how it’s possible without an employee contract involved. Coke and Pepsi aren’t going to employ the same W-4 employee simultaneously. Uber and Lyft work because of the 1099 contracts of their drivers. California is in deep, deep shit if all 1099 workers are eventually eliminated.

    Liberalism is a mental order. They have no idea how successful businesses grow and survive. Are most voters in CA local, state, or federal government workers? That’s the only way this law makes sense for there not being protests in Sacramento.
  • WestlinnDuck
    WestlinnDuck Member Posts: 17,905 Standard Supporter
    Free lance journalists have been "fired" because the cost of registering your out of state publication in Cali is outrageous. When we speak of high taxes and regulatory burden on businesses this is a perfect example. Making them employees is a very high regulatory hurdle. So high at this point businesses just stop paying Californians rather than comply.
  • Goduckies
    Goduckies Member Posts: 8,082 Standard Supporter
    The reason ab5 was pushed forward was two fold... there are a lot of dumb drivers who take every ride and don't think for themselves so they would barely make anything and the state was getting no money from us because of the deduction. So this only helps the idiot drivers not the smart ones.
  • doogie
    doogie Member Posts: 15,072
    edited August 2020
    For Drivers who want to drive for both, nothing changes. Each trip is independent of every other trip. ( Teamsters are muscling in to change that)

    Uber or Lyft will simply calculate .58/mile for your 6 block trip and tag it onto your receipt like the airport fee and county tax, city tax, insurance fee that they do now.