The creator economy may be bigger than we think, and taxing side hustles will be a growing issue as an OnlyFans ‘sin tax’ is debated

Financial authorities and statisticians have long downplayed the importance of different types of economic activity, and side hustles are no different, according to Paul Donovan, chief economist at UBS Global Wealth Management.

In a Financial Times In an op-ed late last month, he pointed to a major milestone in the creator economy: An analysis from WPP Media indicated that creator-generated content would bring in the same share of global advertising revenue as the radio and newspaper industries in 2025.

“Ad revenue is not flowing to traditional platforms,” Donovan wrote. “To get a message out to the modern world, you have to find a 15-year-old with a smartphone and a great set of dance moves.”

While some influencers can make a living from their online content alone, most creators are likely to generate additional income, he said.

But a larger group of people can benefit from this work. For example, more musicians can now make money by putting their music on streaming services, bypassing the record labels that have historically served as gatekeepers.

“Online marketplaces abound, allowing anyone who thinks they have something to sell to find a customer without any cost of renting a physical store,” Donovan explained.

He added that economic impact is difficult to measure, because “social media influencer” is not tracked in labor force surveys.

In fact, there has been a tendency to underestimate reported growth, partly due to such failures to measure some economic output.

In the case of the innovation economy, the dominance of e-commerce means that side hustlers enjoy a huge potential market and minimal fixed costs. But data collectors who track big-box stores more than small online sellers reduce overall consumer spending.

“Side work has economic value, but the work is rarely recognized,” Donovan said.

On the other hand, he noted that measuring the amount of hours a content creator spends on work may be more difficult than tracking their sales. This may skew productivity data.

Another issue is how to tax indirect revenues, a growing problem for many fiscal authorities. Because the effort required to tax each small business can cost more than the revenue generated, a sole proprietorship can often claim tax breaks on some of its income.

“But as with the rethinking of small duty exemptions, financial authorities may have to reassess tax-free allowances for side hustle,” he warned.

The issue recently came to light in Florida, where a Republican gubernatorial candidate proposed imposing a 50% “sin tax” on OnlyFans creators to fight “cultural decadence” and discourage young women from selling their nude photos.

This angered content creator Sophie Reign, who said the people The magazine was “the stupidest thing I’ve ever heard of.”

“No one forced me to create OnlyFans, it was my decision, so I don’t need a 31-year-old man telling me I can’t sell my body online,” she said. “I’m a Christian, God knows what I’m doing, and I know He’s happy with me. That’s the only validation I need.”

This story originally appeared on Fortune.com

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2026-01-18 00:47:00