A bill that would offer Universal License Recognition in Mississippi has been approved by the state House of Representatives and is currently pending before the Senate. This bill – House Bill 1263 – would build upon Mississippi’s recent success of allowing military spouses and dependents to obtain a Mississippi license based on the education and training that they have already completed in other states. 

“In all states, onerous occupational licensure laws keep Americans from their right to earn a living,” explained Grover Norquist, president of Americans for Tax Reform, in a letter urging the Mississippi Senate to support HB 1263. “These barriers to work – which include, but are not limited to, excessive training and expensive fees – are often put in place by the politically connected as a way to protect themselves from competition.”

In 2019, Arizona became the first state to implement Universal License Recognition. Six more states – Pennsylvania, Utah, Montana, Idaho, Iowa, and most recently, Missouri – have already followed suit, and many more are working towards this goal.

“HB 1263 would allow Mississippi residents who have unexpired occupational licenses in good standing in a previous state to immediately begin working in Mississippi, saving them countless hours of valuable time,” wrote Norquist. “Removing these redundant regulatory hurdles would make Mississippi a much more attractive place for workers with valuable skills, those starting new careers, and business owners. This would be a big win for all Mississippi residents, as attracting people and investment would ultimately lead to more jobs and opportunities.”

To read the full letter, click here.

March 8, 2021

To: Members of the Mississippi Senate

From: Americans for Tax Reform

Re: Support House Bill 1263

Dear Senator,

On behalf of Americans for Tax Reform (ATR) and our supporters across Mississippi, I urge you to support House Bill 1263, legislation that would streamline the process for new Mississippi residents to get a Mississippi occupational license. If implemented, this reform, also known as Universal License Recognition, would be a huge win for people across the Magnolia State.

In all states, onerous occupational licensure laws keep Americans from their right to earn a living. These barriers to work – which include, but are not limited to, excessive training and expensive fees – are often put in place by the politically connected as a way to protect themselves from competition. 

“Licensing laws now guard entry into hundreds of occupations, including jobs that offer upward mobility to those of modest means,” writes the authors of the second edition of License to Work, an Institute for Justice report that “examines both the scope and the specific burdens of occupational licensing” affecting 102 lower-income occupations. On average, one of these licenses requires $267 in fees, nearly a year of education and experience, and one exam.

To put the consequences of these protectionist policies in perspective, estimates show that occupational licensure laws may result in as many as 2.85 million fewer jobs nationwide and could cost consumers as much as $203 billion a year.

Fortunately, more and more lawmakers are recognizing the serious harm that licensing laws inflict on job seekers and are working to remove these barriers. Mississippi made some great progress on this front last year by allowing military spouses and dependents to obtain a Mississippi license based on the education and training that they have already completed in other states. Now, Mississippi has an opportunity to build on that success through HB 1263, which would extend Universal License Recognition to all Mississippi residents.

Arizona was the first state to implement Universal License Recognition in 2019 and six more states – Pennsylvania, Utah, Montana, Idaho, Iowa, and most recently, Missouri – have already followed suit. Representative Derek Grier, the sponsor of the Missouri reform, explained that Universal License Recognition allows new workers to “plug in right away,” and makes it so they won’t “be hindered by the government so long as there are no health, safety, and wellness concerns.”

HB 1263 would allow Mississippi residents who have unexpired occupational licenses in good standing in a previous state to immediately begin working in Mississippi, saving them countless hours of valuable time. Removing these redundant regulatory hurdles would make Mississippi a much more attractive place for workers with valuable skills, those starting new careers, and business owners. This would be a big win for all Mississippi residents, as attracting people and investment would ultimately lead to more jobs and opportunities.

It is senseless for government to get between workers and jobs by forcing those licensed in good standing in other states to begin from scratch. ATR supports HB 1263 and urges lawmakers to vote YES.

Sincerely,

Grover Norquist

President, Americans for Tax Reform

House Democrats this week are trying to impose the independent contractor-destroying, Right-to-Work banning, secret ballot-ending "PRO Act." This legislation has also been endorsed by President Joe Biden and Vice President Kamala Harris.

Below is a compilation of testimonials from Americans opposed to the PRO Act:

Deborah Lynn Blumberg - "The #PROAct's #ABCTest will destroy my successful freelance career & the careers of millions of other freelancers. Freelancing is the only way I can take care of my children & my chronic health issue. Please don't end my career. Replace the #ABCTest with the IRS Common Law test." (Tweet, Feb. 24)

Ericka Chickowski - "Please don't kill my small business with the #ABCTest in #PROAct. I am a successful independent contractor, sole bread winner and mom of two young girls. Please allow me to feed them & teach them that they can make it as entrepreneurs as long as they put the work in. #NoPROAct." - (Tweet, March 2, 2021)

Natasha Gabrielle - "Please vote NO for Pro Act, @USRepMikeDoyle. This bill would make it almost impossible for so many freelance writers like myself to keep doing the work we do. We love our work! #NoProAct #FightForFreelancers #NoABCforUSA." (Tweet, March 2, 2021)

Tom Mangan - "What kind of "fairness" would FORCE me to accept W2 employment - at a considerable loss in income if I could even find a W2 job in my field? The unions want the ABC test everywhere with no regard to the damage. #NoPROAct" (Tweet, March 5)

Briana Sharp - "With my clients, we agree on an outcome and a timeline. They contract with me for my expertise, and I control the method and my availability. This is nothing like an employment relationship. #FightForFreelancers #NoABCforUSA" (Tweet, March 2, 2021)

Sharon Goldman - "My state, NJ, is FULL of freelance writers, musicians, editors, photographers, designers, copywriters, accountants, marketers & more. #PROAct with #ABCTest will force many out of biz." (Tweet, March 2, 2021)

Annie Logue - "The state is New Hampshire. Maybe a freelance editor would help you. They help me all the time. I am a freelance writer. I want the retain the right to operate my business as an independent contractor. #FightForFreelancers" (Tweet, March 2, 2021)

Juli Mandel Sloves - "I urge my reps: Don’t kill my business! I choose to be an Independent Contractor - I make more money and have the flexibility to care for my family. Vote NO on the ProAct. Remove the antiquated ABC. #FightForFreelancers" - (Tweet, March 2, 2021)

Jennifer L.W. Fink - "The PRO Act will destroy my freelance writing career and my ability to care for my family (children & aging parents) while also earning a living and contributing to our society. The ABC test is an outdated standard from the 19030s. #PROAct #FightForFreelancers" (Tweet, March 2, 2021)

Michelle Horn - "@SenToomey please vote no for the PRO Act with the ABC test. I already have protection via the IRS rule for independent contractors. No govt should force a client/contractor to be employer/employee. Protect PA from AB5 disaster in CA. #NoPROAct" (Tweet, March 5)

Poornima Apte - "Dear @RepStephenLynch the #PROAct threatens my livelihood as a freelance writer. Please replace the #ABCTest with IRS rules to protect business owners like me who are your constituents. #FightForFreelancers" (Tweet, March 2, 2021)

Karen Kroll - "Especially over the past few years, we've all seen W2 employees laid off. Job security is a myth at this point. As an independent contractor, multiple income streams mean a loss of one client is less likely to be financially devastating. #FightForFreelancers" (Tweet, March 1, 2021)

Kate Silver - "I've had a successful freelance writing business for 14+ years, and it if the Pro Act passes as is, it'll threaten my career. This act would not only hurt freelancers, but editors and digital agencies who rely on them. This insightful post explains it well. #FightForFreelancers" (March 1, 2021)

Kim Kavin - "Dear @VP, Why don't you also support the millions of us who choose independent contractor work across America? Why are you trying to outlaw our careers by copying the ABC Test from California's #AB5 in the #PROAct?" (Tweet, March 1, 2021)

Michele C. Hollow  - "Dear @SenBooker, I and so many #Democrats don't want to change parties. I'm a lifelong democrat. But this party is going to kill my career if the ABC Test in the #PROAct passes. 1,000s of gig workers will lose their livelihoods. Please listen to us." (Tweet, March 1, 2021)

Cheryl Maguire - "My pitch was accepted at a Hearst pub but I live in MA & MA uses the ABC test so I can't be hired. This law is preventing me from freelance writing. Please help change it" (Tweet, March 1, 2021)

Jill Schildhouse - "@SenMarkKelly and @SenatorSinema. If the PRO Act is accepted with the current ABC test, I and countless other freelancers who have spent decades building successful businesses will lose them and be out of work. Please ask for this portion to be removed. #FightForFreelancers" (Tweet, March 1)

Paige Cerulli - " @SenMarkey @SenWarren @RepRichardNeal The antiquated ABC test wasn't designed for the modern-day freelancer. We don't need or want to be employees, and we CHOSE to freelance for a reason. Don't support the PRO Act with the ABC test. #fightforfreelancers #NoABCforUSA" (Tweet, March 1, 2021)

Roxanne Hawn - "Me too. 21+ years of successful independent work would go down the tubes if the ABC Test becomes national law with the PRO Act. #FightForFreelancers #NoABCforUSA Majority of independent contractors want to stay that way. Many of them women, people of color, and older workers." (Tweet, March 1, 2021)

Catherine Dold - "@RepJoeNeguse @RepJasonCrow The ABC test will eliminate freelance careers, like mine. I don't need or want to be an employee. Don't support the PRO Act while it contains the ABC test." (Tweet, March 1, 2021)

Michele Wojciechowski - ".@LeaderHoyer please change the ABC test in the PRO Act. I don't want to be on the unemployment roster after spending decades building a successful freelance business. #FightForFreelancers Other businesses are exempt, but writers, editors, musicians, artists, photographers, etc." (Tweet, March 1)

Natasha Gabrielle - "Please vote NO for Pro Act, @USRepMikeDoyle. This bill would make it almost impossible for so many freelance writers like myself to keep doing the work we do. We love our work! #NoProAct #FightForFreelancers #NoABCforUSA" (Tweet, March 1)

Gina Nicole Kelly - "Please update the PRO Act by swapping the ABC test with the IRS test. Millions of freelancers/ICs need this law to be changed otherwise you're killing our livelihoods. I'm not sure why our pleas are falling on deaf ears. You can still protect unions but also protect us." (Tweet, March 2)

Susan Johnston Taylor - "As a full-time #freelance writer of 13 years, I strongly urge you to replace ABC test with the IRS test in the #PROAct. I am a freelancer by choice (not an exploited or misclassified worker) & the ABC test would make it illegal for me to freelance for clients in my own industry." (Tweet, March 2)

Debbie Abrams Kaplan - "Please don't move on a #PROAct vote. You've not considered testimony from freelancers like myself, whose small biz will be decimated by bill passage. The ABC test is too narrow a test for legit indep contractors. #NoABCforUSA #FightForFreelancers" (Tweet, March 2)

Judi Ketteler - "We need to get the ABC test out of the PRO Act! I've been freelancing since 2002, make $100k+ a year, support my family of 4 and would fail the B prong. It is regressive, not progressive. I support protecting workers. This does NOT do that. It harms independent freelancers." (Tweet, March 2)

Julia Dent Bocchese - "Vote NO on the PRO Act unless the ABC test is removed. The ABC test is detrimental to legitimate freelancers and independent contractors and would destroy the businesses we’ve worked so hard to build!" (Tweet, March 3)

Arnold Creative - "Please remove the #ABCTest from the #PROAct. Millions of families like mine will lose significant income because this bill will be the death of freelancers. Some of us rely not only on the income but the flexibility because our situations don't bode well with FT employment." (Tweet, March 2)

Amy Crea - "Take the ABC test out of the PRO Act. If you leave it in, you will literally kill thousands of small businesses. including mine. Just curious--have you even bothered to study the issue with the ABC test, or are you greenlighting something without understanding it?" (Tweet, March 2)

Michele Nebel Peake - "As #eventprofs we have suffered enough over the last 12 months. Taking away our businesses and ability to #freelance will devastate the industry. #meetingprofs groups need to support us, unite against the same rules that hurt our California colleagues." (Tweet, Feb. 24)

Jen Singer - "The PRO Act's ABC Test will shutter small businesses like mine, just like AB5 did in California. I make more money while also working around Covid-related heart failure on my own. Don't close our businesses. #fightforfreelancers" (Tweet, Feb. 24)

Alexandra Jones - "The ABC test will be detrimental to my freelance business, which I’ve spent 4 years building. Please replace it with the IRS to protect self-employed small business owners like me." (Tweet, Feb. 24)

Stephen Beale - "Please listen to the writers, musicians, photographers and others in CA whose livelihoods were upended by AB5's ABC test. Many of us are Dems and labor supporters but this crosses party lines. I was only able to find f/l writing work after AB5 was amended to expand exemptions." (Tweet, Feb. 24)

Wendi Koble - "STOP listening to unions. LISTEN to all these small businesses who are crying out for someone to HEAR THEM. The #ProAct will not help anyone...it's only going to devastate businesses who are already hurting from the pandemic. Please be open-minded enough to hear us!" (Tweet, Feb. 24)

Kayt Sukel - "The ABC test will ruin my career -- and that of other freelance writers and artists like me. This bill needs to be reconsidered." (Tweet, Feb. 24)

SaVanna Shoemaker - "You can't pass this bill without considering what the ABC test will do to freelance biz owners. Look at what AB5 has done to freelancers in CA - 1000s of careers destroyed in an instant. We want to work for ourselves!" (Tweet, Feb, 24)

Marisa Palmieri Shugrue - "Please, @LeaderHoyer @SenSherrodBrown, reconsider the ABC test portion of the #PROAct, which outlaws my ability as a freelancer to write or edit articles for magazines and other publications because that work is part of the "usual course of the hiring entity’s business." (Tweet, Feb. 25)

Michael Stover - "Support the right of 59 million Americans to freelance without retribution and reject bills that forcibly reclassify us as employees against our will. #NoPROAct #FightForFreelancers #EmpoweredNotExploited" (Tweet, March 6)

Jake Poinier - "First change the destructive ABC test to the IRS test so you don't screw over millions of #freelance workers and independent contractors...and then we can talk. Till then: #noABCforUSA #noPROAct #fightforfreelancers" (Tweet, March 5)

Brittney Thompson - "My biz isn’t a “lollipop” When my husband was laid off for 6 months last yr my freelance biz kept us afloat. If you want to protect workers don’t hurt freelancers while you’re doing it. It will destroy livelihoods and cripple an already hurting econ #NoProAct #NoABCforUSA #PROAct" (Tweet, March 2)

Pam Baker - "Say no to #PROact, @LeaderHoyer. I've been a freelance journalist for over 20 years BY CHOICE. I cannot make as much money as staff in a newsroom as I do now. Don't take my livelihood away. #noPROact" (Tweet, March 2)

Congressman Jason Smith (R-Missouri) should be applauded for his recent pro-taxpayer legislation, HR 1380, the Permanent Tax Relief for Working Families Act. This legislation would make permanent the doubled Child Tax Credit of $2,000 per child and the $500 dependent credit established in the 2017 Tax Cuts and Jobs Act (TCJA).

American families have seen significant tax reductions due to the Trump-Republican expansion of the child tax credit as noted in IRS 2018 Statistics of Income (SOI) data:

•  In 2017, 22 million households earning $200,000 or less took the child tax credit. These households received an average tax credit of $1,213.
   
• In 2018, 36 million households earning $200,000 or less took the child and other dependent tax credit. These households received an average credit of $2,002.

• In 2017, 16.6 million households earning between $25,000 and $100,000 took the child tax credit. These households received an average tax credit of $1,271.

• In 2018, 23.3 million households earning between $25,000 and $100,000 took the child and other dependent tax credit. These households received an average tax credit of $1,912.
   

Middle class American families saw the biggest tax cut from the TCJA. 

Americans with incomes between $50,000 and $100,000 saw their tax liability drop by an average of 13 percent, twice as much as Americans with income above $1 million, who saw their tax liability drop by an average of 5.8 percent. 

In Rep. Smith’s 8th District of Missouri, his constituents benefited from the expanded Child Tax Credit.

• In 2017, 48,490 households in the 8th District of Missouri earning $200,000 or less took the child tax credit. These households received and average tax credit of $1,244.

• In 2018, 72,170 households in the 8th District of Missouri earning $200,000 or less took the child tax credit. These households received and average tax credit of $1,996.

• In 2017, 38,730 households in the 8th District of Missouri earning between $25,000 and $100,000 took the child tax credit. These households received an average tax credit of $1,309.

• In 2018, 51, 260 households in the 8th District of Missouri earning between $25,000 and $100,000 took the child tax credit. These households received an average tax credit of $1,989.

Without any action from Congress, the Child Tax Credit will decrease from $2,000 to $1,000 after 2025. If Members of Congress are serious about providing relief for working parents, they should support the Permanent Tax Relief for Working Families Act.

Massachusetts small businesses have struggled under the weight of the pandemic-driven downturn. Data from the Opportunity Insights Recovery Tracker shows that the number of small businesses open is down 37% in Massachusetts since the start of 2020. These statistics likely would have been much worse if federal lawmakers didn’t enact the Paycheck Protection Program as part of the 2020 CARES Act to provide aid to struggling small businesses. 

Approximately 120,000 Massachusetts businesses utilized Paycheck Protection Program federal loans to survive a sudden, once-in-a-century pandemic that shut their businesses down through no fault of their own.  Once they established the PPP, federal lawmakers made clear that if a company took the loan and maintained normal operations, they would forgive the loan, and the IRS would treat the loan as a tax-free grant. Beacon Hill legislators have so far failed to do the same, and Bay State employers are facing the prospect of surprise state income tax bills this spring as a result 

Due to the way the Massachusetts tax code conforms to the federal tax code, the legislature must take action to ensure PPP loans – which were a lifeline to many employers and advertised as tax-free – are not treated as taxable income for small businesses at the state level. Failure to do so would result in many struggling companies facing a surprise income tax bill at a time when they can least afford it. 

Massachusetts businesses now face a March 15 deadline before their tax bills are due. A series of legislation with bipartisan support have attracted over 100 co-sponsors to finally fix this egregious error before it’s too late. However, Beacon Hill leadership has remained far more interested in expensive new climate regulations than protecting small businesses. Questions remain over whether leadership will bring this to a vote. Speaker Ron Mariano and Senate President Karen Spilka must act now to move a clean bill forward and protect small businesses from an expense they could never have expected to pay.  

By clicking here, Massachusetts residents can reach out to their representatives and state senators and urge them to avoid state taxation of pandemic relief by supporting SD172, HD484, HD1338, and HD1965.