A lot of them are "employee in name only" contractors. Doesn't mean much. I've done it myself. There are tax implications when you get 1099'd, as long as you go in eyes open it'll be OK. Don't forget to file your quarterly estimated payments, the IRS isn't amused if you skip one.

There's a lot of talk on HN about the natural evolved tribal size of human orgs being only XYZ people so when we inevitably have a larger than XYZ group its epic fail. Well... it goes the other way too, and its quite possible that natural evolved civilization etc requires more than 2 guys on a "tribe" long term. It doesn't have to be the end of the world or apocalyptic, merely suggesting encouraging microfirms might not be a wise policy decision.

I have operated on 1099 as well; this will definitely cause some skewed numbers on 'employers'.

I believe my point stands, though. Being an employer does not implicitly mean you are part of the 1%; supporting policies that are pro-employer does not implicitly mean you are a neo-capitalist, anti-socialist 1%er.

Having been in a number of 'microfirms' myself, I intuitively think supporting them is wise policy (as a rule of thumb; as with most things, it's wise until it isn't). I may be biased, but I have seen many firms in the US that start this way and grow; low barriers for starting a business is one of the US's greatest assets, from my perspective. It is a foundation for social mobility, stands in contrast to much of the developed world, and is one of the primary motivators for people to chose the US when they 'vote with their feet'.