How App-Based Work Creates Unseen Tax Burdens

In Episode 60 of Inequality Conversations, Lucas and Luna dig into a lesser-known driver of the wealth gap: the tax burden on gig-economy workers. They focus on a specific 2025 study from the National Bureau of Economic Research, which found that workers on platforms like Uber and DoorDash pay an effective self-employment tax rate roughly twice that of traditional employees—when you factor in both the employer and employee side of FICA. The hosts walk through why this happens, the role of Schedule C and quarterly estimated payments, and how the lack of employer matching creates a structural disadvantage. Luna brings a real example of a driver in Houston who owed $3,200 at tax time. They also discuss the 2026 policy debate around the so-called '1099 fairness deduction' and what it could mean for income inequality. If you've ever wondered why gig work often feels like a raw deal come April, this episode explains the mechanics clearly. #GigEconomy #SelfEmploymentTax #WealthGap #Uber #DoorDash #NBER #1099Workers #TaxBurden #FICA #ScheduleC #Inequality #Economics #FexingoBusiness #BusinessPodcast #LaborMarket #TaxPolicy #IncomeInequality #GigWorkers Keep every episode free: buymeacoffee.com/fexingo