New rules for contractors have unexpected consequences for strip clubs

Post by [deleted] » Mon, Oct 14, 2019, 8:38 PM UTC

ultrarunner wrote: post #33

CydeWeys wrote: post #3

"This whole business will be completely ruined. The whole point about being a stripper is you go in, get fast cash, no one knows how you’re getting it, it’s not documented and it’s not taken from you." Sorry not sorry that you have to actually start paying taxes on your income like the rest of us. Some of these quotes are really helping to make the case for the law.

> Sorry not sorry that you have to actually start paying taxes on your income like the rest of us I am. Paying taxes on income (that is then taxed again when spent) is a terrible disincentive. Some states agree with me; I would rather see the standard move toward a model free of income taxation than toward universal taxation. Doubly so when the tone of your comment seems to point to the motivation being largely spite…

Post by cat199 » Mon, Oct 14, 2019, 8:49 PM UTC

dominotw wrote: post #35

CydeWeys wrote: post #32

Earlier quoted context omitted.

I doubt that most strip clubs will be unprofitable now. What I think is closer to the truth is that they were previously obscenely profitable, thanks in part to exploiting dancers and evading taxes, and will now be "merely" profitable along the same lines as any other service-based small business like a bar or restaurant.

> were previously obscenely profitable How can that be. Wouldn't that simply increase the supply of strip clubs, from more getting into something thats that profitable.

Post by dominotw » Mon, Oct 14, 2019, 8:53 PM UTC

wmf wrote: post #47

dominotw wrote: post #35

Earlier quoted context omitted.

> were previously obscenely profitable How can that be. Wouldn't that simply increase the supply of strip clubs, from more getting into something thats that profitable.

I'm going to guess that it's hard to get a license to operate a strip club in San Francisco so it may be more of a regulatory and lobbying game.

Post by gizmo686 » Mon, Oct 14, 2019, 8:57 PM UTC

EdwardDiego wrote: post #39

crooked-v wrote: post #4

The "traditional" standard here is for strippers to obviously be employees but get called contractors to evade paperwork, taxes, and required employee benefits, which is exactly the kind of situation these new standards are intended to prevent. I don't see anything "unexpected" about the result.

Yep, it's very common. "You're an independent contractor, but if you sleep with any of our customers for money[1], we'll 'fine' you $2000, and you can't work for anyone else" [1]Prostitution is legal in my country.

Post by jadell » Mon, Oct 14, 2019, 9:02 PM UTC

ActorNightly wrote: post #56

CydeWeys wrote: post #32

Earlier quoted context omitted.

I doubt that most strip clubs will be unprofitable now. What I think is closer to the truth is that they were previously obscenely profitable, thanks in part to exploiting dancers and evading taxes, and will now be "merely" profitable along the same lines as any other service-based small business like a bar or restaurant.

The more interesting thing is how this is gonna play out for high end strip clubs. Its not uncommon for dancers at those clubs to make upwards of $150k a year, which sometimes includes prostitution at the end of the night with VIP clients.