Freelancing in the Age of Trump: What’s Next?
We’re just over 70 days into Trump’s presidential term. That’s over two-thirds of the way into what some consider the benchmark for presidential success since President Franklin D. Roosevelt racked up 76 bills, which were passed into law in his first 100 days. While President Trump came out of the gates hot with a flurry of executive orders, we’re still waiting for the implementation of much of his campaign promises. So far, the bordering land between the U.S. and Mexico remains concrete block free, and just last week, the Republican Party’s alternative to the Affordable Care Act was torpedoed by its party members and pulled from the House because it lacked the votes to pass.
Whatever your partisan persuasion, a new president and their party’s agenda can be a tumultuous time. Between tax cuts or tax hikes, rollbacks and new bills, congressional inquiries and conflicts of interest, it can be difficult to keep up with what’s going on and how it will affect us as citizens.
Depending on how the new regime shapes up, the freelance workforce which now makes up 30 percent of the economy could become diametrically successful or vulnerable. This demographic is now one of the fastest-growing components of the economy and one of the most politically engaged, with 86 percent claiming they would vote during last year’s presidential election. Considering their political clout, tapping into this demographic and its needs should be a consideration for any president, but whether the freelance workforce holds much interest for Trump remains to be seen yet.
On the surface, Trump’s economic policies — lower taxes, less regulation, and a bolstered economy — serve to benefit the gig economy as a whole. But which way will the gig economy move under Trump? Let’s take a look.
Deregulation could help freelancers find more work:
From the Department of Labor and IRS classifications to the Employee Retirement Income Security Act (ERISA) guidelines, navigating the employment of freelancers can be difficult for entrepreneurs. As a result, some employers may shy away from employing freelancers despite the flexibility they bring. While deregulation could mean a rollback of employee’s rights, which isn’t a good thing, freelancers could benefit from more job opportunities and less red tape when pursuing employment.
Deregulation coupled with lower income tax could mean more people pursue freelance work:
Trump also claimed that he would allow independent workers to file their taxes at a rate of 15 percent. At less than half the rate of employees, this could prove to be an attractive sell to those who wish to be self-employed.
While the healthcare bill is dead for now, freelancers need to remain vigilant about their healthcare options:
During the healthcare bill defeat, Speaker Paul Ryan claimed, “We’re going to be living with Obamacare for the foreseeable future.” Despite this momentary peace of mind for contract workers, the healthcare sector is still one of the Trump administration’s biggest targets. As a result, freelancers must be vigilant about this legislation and how it could affect premiums and access to healthcare in the coming years. Employers have already begun to see freelancer applicants asking about healthcare benefits as uncertainty remains high.
Travel may become more arduous for all:
One of the greatest benefits of freelance work is the ability to set your own schedule, be your own boss, and travel more frequently and freely. Earlier this month, the EU Parliament called for the EU Commission to require visas for US citizens visiting Europe in response to visa restrictions against five EU nations. Trump’s “America First” mentality could result in unpopular foreign policies, and foreign nations may retaliate in ways that could reduce our ability to travel.
Freelancers will become more politically engaged and are a force to be reckoned with:
Freelancers have a unique set of challenges, and with over 1 trillion dollars in freelance earnings per year in the US alone, they have a strong voice in the political arena. In fact, most freelancers are earning more money on their own, raising their rates every year. Over 70 percent of freelancers surveyed in 2015 said they want a more open discussion on how to empower the US’ independent workforce. No matter what the future holds for the gig economy under the new administration, it is imperative to stay abreast of what’s happening on the hill. The freelance community has never been stronger in numbers or spending power, and policymakers can rest assured they will show up to the mid-term elections and cast their votes accordingly.
Has the new administration changed your thoughts on pursuing a freelance career? I’d love to hear your thoughts and continue the conversation in the comments.
