A 1099 "employee" is actually an independent contractor and, as such, would have to pay both the employer's share and the employee's share of employment tax withholdings. Unless your compensation increases enough incrementally to cover your added tax liability, I don't think you'd be better off. And, as an independent contractor, I'm not sure you'd be eligible for unemployment benefits, but I recommend that you consult with a local lawyer on that issue.
Please note that I am licensed only in Alabama and Georgia. The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.