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HomeBlogThe Multi Billion Dollar Subsidization Of Contractor Labor

The Multi Billion Dollar Subsidization Of Contractor Labor

While Members of the National Association of Mortgage Field Services are patting themselves upon their collective backs for taking Contractor Wages to historic lows — when they actually choose to pay Contractors — they are avoiding the unspoken fact that this Pricing comes compliments of the Welfare Rolls and Taxpayer Subsidies.

With Inspections at $2 in some areas and Grass Cuts at $15, the reality is that when taxes are filed, the Net Income of many, many Contractors — not Order Mills — place Contractors on the Welfare Rolls.

As Contractors are not YET declared employees, every single Contractor files a Schedule C on their Income Taxes. The obvious goal of any Boots on the Ground Contractor is to show a Net Income of virtually nothing. With the pricing that Members of the National Association of Mortgage Field Services currently pay, this is a simple task. If you are doing say 10 Grass Cuts in a day at $15 each, that is $150. When factoring in gas, insurance, truck payment, mower and trailer payment, etc. most Contractors are in the negative.

Eligibility for a Welfare program depends on numerous factors. Eligibility is determined using gross and net income, size of the family, and any crisis situation such as medical emergencies, pregnancy, homelessness or unemployment. A case worker is assigned to those applying for aid. They will gather all the necessary information to determine the amount and type of benefits that an individual is eligible for.

The Federal government provides assistance through TANF (Temporary Assistance for Needy Families). TANF is a grant given to each state to run their own welfare program. To help overcome the former problem of unemployment due to reliance on the welfare system, the TANF grant requires that all recipients of welfare aid must find work within two years of receiving aid, including single parents who are required to work at least 30 hours per week opposed to 35 or 55 required by two parent families. Failure to comply with work requirements could result in loss of benefits.

On an average of $60,000 per year Gross, the net would average around $10,500. These numbers are taken from an actual Internal Revenue Service (IRS) Tax Filing by a Contractor whom has now been forced to collect Welfare Benefits.

The question that presents; the question which was recently the focus of the fast food industry, is how much of the Contractor’s ability to work for fourteen cents on the dollar is being financed by US Taxpayers to ensure a continued obscene revenue stream to Members of the National Association of Mortgage Field Services?

Two studies released today make some different calculations to determine the total cost to American taxpayers of a large, low-wage workforce. It comes to an average of $7 billion a year. That’s the amount of annual public assistance families of fast-food workers received between 2007 and 2011, according to a new report written by economist Sylvia Allegretto and others, sponsored by the University of California at Berkeley’s Labor Center and the University of Illinois at Urbana-Champaign, and funded by Fast Food Forward, the group that helped organize the summer’s labor strikes. The authors used publicly available data.

The National Association of Mortgage Field Services, whose Executive Director Eric Miller receives nearly SEVENTY PERCENT OF ALL MEMBER DUES, refuses to maintain statistical data on the Property Preservation Industry which would assist in bringing insight to this and other issues such as how many Members of the National Association of Mortgage Field Services refuse to pay their Contractors.

When the Investigations and Audits begin full force in Q1 2014, I believe that both the US Government and Financial Institutions are going to find the wisdom in running from National Association of Mortgage Field Services Members based, in part, upon their inability to police their own. A tragedy, really, when this entire debacle has been overseen by Eric Miller. When National Association of Mortgage Field Services Members reflect back, they will remember that the nearly SEVENTY PERCENT of their Member Dues went to a man whom oversaw the collective destruction of an Industry.

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