Just about every technical expert who is, or is considering becoming, an independent contractor have Moynahan soley to blame for the IRS regulations that outright discriminates against independent engineers and programmers. And every taxpayer (that's nearly EVERY FReeper and even a few DUsrupters) has him to blame for siphoning off their money to a middle-man, pure-pork, industry.
What was his role in this?
It was at the conference committee resolving the differences between the Senate and House versions of Ronald Reagan's important 1986 Tax simplification act. From his position as chairman of the powerful Senate Finance Committee he inserted the infamous rule 1106 into the bill at the eleventh hour.1
So what? That's normal in D.C. How does that make him dishonorable?
Well how about huge conflict of interest? His family ties to the largest temporary employer in the country, CDI, is virtually unknown.
For whatever reason -- be it his position as senior New York Senator, or his genial professorial background, or his former hawkish Ambassadorship to the U.N. -- he remained beyond scrutiny for that connection. And that oversight was and reamins costly.
This "little" personal gain has resulted in huge payouts to largely parasitic third-person agencies like CDI. This is paid by the Federal govt in paricular, but also by any company that feared IRS prosecution for employing specialists on an as-needed basis.
His personal gain has cost us taxpayers anywhere from 25% to 100% increase in the cost of independent specialists who provide their expert services, not just to benefit one company, but to benefit entire industries for the benefit of all of us.
So before the members of FR join in cannonizing this man, please recognize -- at the least -- this not insignificant "contribution," exposing the gross venal side, of who many in the coming days will declare "a great man."
-Av
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1 This abolished what used to be called the "safe harbor." Due to onerous legal ramifications facing employing companies for the slightest error, rule 1106 virtually required high-tech independent contractors to incorporate or to be represented by third-party agencies. For many incorporation didn't help but hinder, so they went back to the middle-men to work as temps or not work at all. HenceL
Moynahan: patron saint to American temporary employment agencies.
If you don't have on your fingertips those facts, and yet are willing to condemn the man on the day of his death over what everyone would have to agree is an obscure piece of legislation, you end up looking a lot worse than Moynihan in terms of ethical conduct.