The creator economy might be more extensive than we realize, and as discussions continue around an OnlyFans 'sin tax,' the taxation of side gigs is set to become an increasingly prominent concern.

The Overlooked Influence of Side Hustles and the Creator Economy

Paul Donovan, chief economist at UBS Global Wealth Management, notes that both fiscal authorities and statisticians have consistently failed to fully capture various forms of economic activity, with side gigs being no exception.

In a recent Financial Times opinion piece, Donovan highlighted a significant development in the creator economy: research from WPP Media suggests that by 2025, content produced by creators will command a share of global advertising revenue equal to that of radio and newspapers combined.

“Advertising dollars are shifting away from traditional outlets,” Donovan observed. “To effectively communicate today, you might need to enlist a teenager with a smartphone and some impressive dance skills.”

While a select group of influencers can support themselves entirely through their digital content, Donovan points out that most creators earn extra income rather than a full living from their online activities.

Expanding Opportunities in the Digital Marketplace

The digital landscape has opened doors for a broader range of individuals to participate in the creator economy. For instance, musicians now have the ability to distribute their work on streaming platforms, bypassing the traditional gatekeeping role of record labels.

Donovan explains, “There is an abundance of online marketplaces, enabling anyone with something to offer to reach customers without the overhead of a physical storefront.”

Challenges in Measuring and Taxing the Creator Economy

Despite its growing significance, the economic contribution of creators is difficult to quantify. Job titles like “social media influencer” are not typically included in labor market surveys, making accurate measurement elusive.

This lack of precise data has led to chronic underestimation of growth in sectors like the creator economy. The prevalence of e-commerce means that side hustlers can access vast markets with minimal upfront costs, but official statistics often focus on large retailers, overlooking the impact of smaller online sellers and thus underreporting total consumer spending.

“Side hustles generate real economic value, yet their contributions frequently go unrecognized,” Donovan remarked.

He also notes that tracking the number of hours creators invest in their work is even more complicated than monitoring their sales, which can distort productivity statistics.

Another complication is the taxation of income from side hustles. Many tax authorities struggle with the cost-effectiveness of collecting taxes from numerous small businesses, leading to situations where sole proprietors can claim exemptions for portions of their earnings.

Donovan cautions, “Just as authorities have reconsidered tariff exemptions for small packages, they may need to reevaluate the tax-free thresholds for side income.”

Debates Over Tax Policy and Social Impact

These issues have recently surfaced in Florida, where a Republican gubernatorial candidate has suggested imposing a 50% “sin tax” on OnlyFans creators as a means to combat what he describes as “cultural decline” and to discourage young women from selling explicit images online.

This proposal sparked backlash from content creator Sophie Rain, who told People magazine that it was “the dumbest thing I’ve ever heard of.”

“No one forced me to join OnlyFans—it was my own choice, and I don’t need a 31-year-old man telling me what I can or can’t do online,” she said. “I am a Christian, God knows my actions, and I believe He supports me. That’s the only approval I seek.”

This article was first published on Fortune.com.