I don't know much of the details of this bill. However, this is something that has already happened in the UK (and I guess a lot of other countries). The main motivation for this was that it was a tax dodge. In the UK, contractors were able to take a very small salary from their company and then pay the majority of their income via share dividends. For IT contractors in particular, this made sense to avoid the 40% tax threshold on income. The main issue was that many people doing this were effectively full time employees with only a single customer who they were working full time for. You might change customer occasionally but you could stay with that customer for many years. These days, you need to show you have income from more than one source or that you have a contract that allows things like subcontracting. For those of us affected by this, most of us managed to get well paying permanent jobs. Maybe not quite as lucrative is before but actually not too bad once you consider the benefits.