Incentive to Cheat by Misclassifying a Worker

Before Congress and states raise taxes, how about getting employers who cheat to pay employment-related taxes? See this U.S. Department of Labor report. For a typical worker whose annual income is $43,007, an employer can save $3,710 in employment taxes by misclassifying this person as an independent contractor. To illustrate: This type of cheating cost Texas $1.2 billion a year in employment-related taxes. See here.