1099 Weekly: The Most Important Political Moment for the Sharing Economy?
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Last week we reported on the state of innovation in the 1099 economy. Innovation tends to press the boundaries of established law, and often times, a cycle of regulation follows an innovation boom. This regulatory cycle has been building for awhile in the on-demand economy, and things have reached a critical moment for the long-term business models of several key players. Here’s the scoop.
Haters gonna hate
Airbnb in Disputes With New York and San Francisco (5 min)
Katie Benner, New York Times
SF is preparing to fine Airbnb $1,000/day for every unregistered host (only 20% are currently registered with the city). NYC is poised to levy huge fines on residents who rent their apartments on Airbnb for less than 30 days (i.e. nearly all Airbnb hosts).
New York Law Targeting Airbnb Could Provoke $500 Million Loss, Study Says (3 min)
Amir Nasr, Morning Consult
A bill awaits Gov. Cuomo to outlaw advertising the “occupancy or use” of a dwelling, unless it's for permanent use – at least 30 days. If New Yorkers can’t list their homes on Airbnb, this bill could cost them $500M in annual revenue.
Drivers battle Uber over employment rights (6 min)
The Uber worker classification battle gathers fire across the pond, the first time Uber faces legal action in the UK about driver employment status. Uber will want to nip this in the bud now, to keep further disputes from embroiling their business model.
Airbnb and Uber to Democrats: You Need Us (4 min)
Joshua Brustein, Bloomberg Tech
At the DNC this week, Airbnb and Uber are largely powering visitor accommodations and transportation. And they’ve come to Philly with a powerful message: over-regulation will backfire. By 2025, 75% of voters will be Millennials, and these voters are relying on the success of the sharing economy for their economic futures.
Sharing economy taxes getting a closer look
Tax office casts an eye over sharing economy (3 min)
Craig Thomson, Glenn Innes Examiner
The Australian Taxation Office is paying special attention to people claiming expenses due to ride sharing or renting out their home. Will the IRS follow suite?
Health regulation for the 1099 worker
One Court Case That Could Really Hurt Obamacare Insurers (7 min)
Caitlin Owens, Morning Consult
House v. Burwell is complicated. In short, it seeks to discontinue premium subsidies for people with certain incomes. Right now, these government subsidies go directly to the insurer, so if they stop, the consumer will almost certainly foot the full bill. If the House is successful, some projections forecast silver plan premiums to increase by $1,040 per person.
Until next time, have a great week.